Which of the following statements is true?
A) The marginal revenue of a monopolistically competitive firm will be positive at high prices and negative at low prices.
B) Because the demand curve for a monopolistically competitive firm is downward-sloping its marginal revenue will be negative.
C) The marginal revenue of a monopolistically competitive firm will be always be positive.
D) The marginal revenue of a monopolistically competitive firm will be positive at low prices and negative at high prices.
Answer: A
You might also like to view...
Fundamental economic problems basically arise from
A) the fact that society has more than it needs. B) turmoil in the stock market. C) the unequal distribution of income. D) our wants exceeding our scarce resources.
A manager bidding in an auction with independent private values for a large piece of industrial equipment has estimated that the expected profit from the equipment is $10 million. If the manager is indifferent about the uncertainty surrounding the expected profit of the equipment, the manager is ________ and the manager's value of the truck is ________.
A) risk averse; $10 million B) risk neutral; $10 million C) risk averse; less than $10 million D) risk neutral; less than $10 million
Mitsubishi Corporation of America builds a car in Normal, Illinois, and ships it to Japan for sale. In which country's GDP is this production included?
a. Japan b. both Japan and the United States c. in Japan as retail value and the United States as wholesale value d. half the value in Japan and half in the United States e. the United States
Which of the following statements best represents economists' beliefs about the bias in the CPI as a measure of the cost of living?
a. Economists agree that the bias in the CPI is a very serious problem. b. Economists agree that the bias in the CPI is not a serious problem. c. Economists agree on the severity of the CPI bias, but there is still debate on what to do about it. d. There is still debate among economists on the severity of the CPI bias and what to do about it.