If total revenue is increasing as output is rising, then
A. marginal revenue must be equal to zero.
B. marginal revenue must be greater than zero.
C. marginal revenue must be less than zero.
D. price must be increasing.
B. marginal revenue must be greater than zero.
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Technological progress should lead to
A) an outward (rightward) shift in the investment function. B) an unchanged investment function. C) a downward movement of the investment function. D) less saving.
A private auction is an auction in which
A) individuals know their own value of the good and everyone else's valuation, too. B) individuals have their own valuation of the good but don't know everyone else's. C) many auctions are auctioned off at the same time. D) only one good is auctioned off.
Price elasticity of demand is defined as the ratio of the:
a. percentage increase in price to an increase in quantity demanded. b. unit change in quantity demanded to the dollar change in price. c. maximum amount that consumers will pay to increase quantity. d. percentage change in quantity demanded to the percentage change in price, other things being equal.
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. From the information in Table 35.1, it is clear that
A. China has both an absolute and comparative advantage in soybeans. B. The United States has a comparative advantage in both goods. C. The United States has an absolute advantage in both goods. D. China has a comparative advantage in computers.