question archive 1)A firm facing a downward-sloping demand curve sells 50 units of output at $10 each

1)A firm facing a downward-sloping demand curve sells 50 units of output at $10 each

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1)A firm facing a downward-sloping demand curve sells 50 units of output at $10 each. The firm's average revenue is:

a. $10.

b. less than $10 but more than zero.

c. $500.

d. zero.

e.more than $10 but less than $500.

2)A producer knows that the price elasticity for his product is -0.5. He wants to increase quantity demanded by 30 percent. By what percentage does he need to change the price?

a. - 6 percent

b. 10 percent

c. - 9.5 percent

d. - 60 percent

e. 6 percent

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