What is the relationship between price, marginal revenue, and total revenue for a monopolist?
What will be an ideal response?
As shown in the following figure, the total revenue curve takes on a hump-back shape because it increases when marginal revenue is positive and decreases when marginal revenue is negative. For this reason, total revenue is at its maximum when the marginal revenue curve crosses the x-axis — that is the point where an additional unit of output causes marginal revenue to equal zero.
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Suppose a consumer only purchases food and clothing, and food is plotted along the horizontal axis of the consumer's indifference map
If the price of clothing increases and the price of food and income do not change, then the budget line changes by rotating: A) counter-clockwise about the fixed vertical axis intercept. B) clockwise about the fixed vertical axis intercept. C) counter-clockwise about the fixed horizontal axis intercept. D) clockwise about the fixed horizontal axis intercept. E) none of the above
When the price level increases people:
A. demand a smaller quantity of goods and services in the aggregate. B. feel more wealthy. C. have the same real value of assets, regardless of the change in the price level. D. want to spend more, but can’t due to the prices of all goods and services going up.
Suppose there are 3 possible outcomes to a vote: A, B, and C. If voters prefer A to B, B to C, and C to A, which of the following concepts are violated?
a. Transitivity b. Arrow's impossibility theorem c. Median voter theorem d. None of the above concepts are violated.
In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because the:
A. domestic currency will appreciate. B. country eventually will consume more and produce less. C. country eventually has to produce more than it consumes in order to pay foreigners their profits. D. country eventually will sell all its financial assets to foreigners.