Suppose the accompanying table describes the demand for a good produced by monopolist.PriceQuantity$101$92$83$74$65$56$47The monopolist's marginal revenue from selling the 4th unit of output is less than $7 because:
A. marginal cost is greater than $3.
B. demand is perfectly elastic.
C. the consumer only pays $4 for the 4th unit.
D. it has to charge $1 less for each of the first 3 units of output.
Answer: D
You might also like to view...
When we keep part of our wealth in a bank checking account, we are using money as a
A) store of value. B) medium of exchange. C) barter token. D) unit of account. E) unit of currency.
One impact of a rise in the dollar's value is that
A) imports become cheaper for the U.S. consumer. B) exports will increase sharply. C) U.S. goods will become cheaper overseas. D) U.S. goods are cheaper domestically.
The firm's fixed cost refers to costs that
a. do not change as the price of a good changes b. do not change as the firm's output changes c. can never be changed d. can only be changed in the short run e. do not change when the scale of the operation changes
As the real wage decreases, the quantity of labor demanded ________ and the quantity of labor supplied ________.
A. increases; increases B. decreases; decreases C. decreases; increases D. increases; decreases