For a monopolist, the reason that marginal revenue is less than price is
A) because of the perfectly elastic demand curve that the monopolist faces.
B) because the monopolist must lower the price of the good in order to sell an additional unit.
C) because of the U-shaped average revenue curve.
D) because of the lack of competition in the market.
Answer: B
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Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?
a. the United Kingdom b. Mexico c. Argentina d. China
Which of the following integration types has the potential problem of increasing the firm's market power?
A. Cointegration B. Horizontal integration C. Conglomerate integration D. Vertical integration
Which of the following is NOT a factor that determines the price elasticity of demand?
A. the existence of substitutes B. the percentage of a consumer's total budget spent on the good C. the length of time allowed for adjustments to change in the price of the commodities D. the amount that suppliers have made available
Economists have used the ultimatum game and the dictator game in experiments designed to determine
A) whether consumers care about fairness when they make decisions. B) whether consumers believe it is fair for producers to raise the price of a product for which there is excess demand. C) whether consumers understand the difference between implicit costs and explicit costs. D) whether consumers understand the rule of equal marginal utility per dollar spent.