Answer:
True
Explanation: 
A price discriminating monopolist will set a higher price where demand is more elastic and a lower price where demand is less elastic.
        
             
        
        
        
Answer: Option (A) is correct.
Explanation:
Given that,
Money supply increases (M) = 12 percent
Velocity decreases (V) = 4 percent
Price level increases (P) = 5 percent
Real GDP (Y) = ?
According to the quantity theory of money,
Percent Change in M + Percent Change in V = Percent Change in P + Percent Change in Y
                                                          12% - 4% = 5% + Percent Change in Y
                                     Percent Change in Y = 8% - 5%
                                                                          = 3%
Therefore, change in real GDP must be 3%.
 
        
             
        
        
        
(a) Marginal propensity to consume (MPC) = 0.7
(b) Multiplier of this economy:
      = 3.33
(c) Decrease government purchases by $300 billion,
Initial change in consumption = Change in government purchases × MPC
                                                  = $300 × 0.7
                                                  = -$210 billion
(d) This decreases income yet again, causing a second change in consumption equal to:
= Initial change in consumption × MPC
= -$210 × 0.7
= -$147 billion
(e) The total change in demand resulting from the initial change in government spending is:
= Change in government purchases × Multiplier
= $300 × 3.33
= -$1 trillion
 
        
             
        
        
        
Answer:
Estimated manufacturing overhead rate= $6.42 per direct labor hour
Explanation:
Giving the following information: 
The company's executives estimated that direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period.  
Using direct labor hours as a base, what was the predetermined overhead rate?
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,540,000/240,000= $6.42 per direct labor hour