To maximize net revenue, a price searcher should
A) set total revenue equal to total cost.
B) set marginal revenue equal to marginal cost.
C) set net revenue equal to zero.
D) reduce output if marginal costs are increasing.
B
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If Md = 2,600 – 200r, the MPC = .75, G=100, and T = 100 . If the central bank wants the interest rate to be r=2, then the money supply must be
a. 5. b. 400 c. 300 d. 3,000 e. not enough information was given.
The situation in which a person places greater value on a good as fewer and fewer people possess it is called the
A) Bandwagon Effect. B) Greater Value Effect. C) Snob Effect. D) Behavioral Effect.
If a demand curve shifts, we know that
A) the price of the good itself is not a factor. B) the price of the good itself is a factor. C) the price of the good and supply are the major factors. D) the price of the good and demand are major factors.
All of the following conditions, except one, must exist in order for a firm to successfully practice price discrimination. Which is the exception?
a. The firm must be a price taker. b. The firm must be able to identify which customers are willing to pay more. c. The firm must be able to prevent the resale of its output by low-price customers to high-price customers. d. The firm must be able to charge higher prices to some customers without losing their business. e. The firm must be a price setter.