When marginal revenue is zero:
A. total revenue is maximized.
B. elasticity of demand is zero.
C. total cost is minimized.
D. profit is maximized.
Answer: A
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A) screening B) monitoring C) a restrictive covenant D) a patent contract
A decrease in supply will have what effect on equilibrium price and quantity?
a. Price will increase; quantity will decrease. b. Price will decrease; quantity will increase. c. Both price and quantity will increase. d. Both price and quantity will decrease.
Assume that Clara purchases a combination of products Y and Z such that, after she is done spending her limited income, MUy/Py = 25 and MUz/Pz= 15. Based on the equal marginal principle, Clara
A. is maximizing her total utility. B. should have purchased less Y and less Z. C. should have purchased more Y and less Z. D. should have purchased less Y and more Z.
A government regulation that bans the use of a certain polluting technology in the production of a good is an example of a ________ to solve an externality
A) social enforcement mechanism B) command and control approach C) market-based approach D) Coasian approach