A separate average revenue curve is not required when you have the demand curve for a firm. Explain
Demand curve itself is the average revenue curve of a firm, because the product price is the average revenue that the firm receives.
By definition
TR = P * Q
AR = (P * Q) / Q
AR = TR / Q = (P * Q) / Q = P
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If Les can produce two pairs of pants per hour while Eva can produce one pair per hour, then it must be true that:
A. Eva has a comparative advantage in producing pants. B. Les has a comparative advantage in producing pants. C. Les has an absolute advantage in producing pants. D. Les has both comparative and absolute advantage in producing pants.
At a long-run equilibrium in monopolistic competition, price equals
A) average total cost. B) marginal cost but not marginal revenue. C) marginal revenue but not marginal cost. D) zero. E) marginal revenue and marginal cost.
The textbook asserts that banks create money themselves. How?
A) Banks have their own printing presses, which is permitted by the Fed. B) Banks are allowed to reach well into their required reserves as long as they can demonstrate that it would be profitable to do so. C) Banks, when lending out their excess reserves, unleash a process that can increase the money supply through the deposit expansion multiplier. D) For all of the above reasons.
The figure above shows the market for umbrellas in Sunville. What is the marginal social benefit that Sunville consumers receive from the 200th umbrella bought?
A) $23.33 B) $30.00 C) $26.67 D) $50.00