For a seller who is a price taker, marginal revenue is always
A) less than marginal cost.
B) more than marginal cost.
C) the same as marginal cost.
D) less than price.
E) the same as price.
E
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Refer to Figure 8.1. Holding other variables constant, an improvement in technology will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
In the above figure for a monopolistically competitive firm, the profit-maximizing output and price are respectively
A) 80 units and $11. B) 50 units and $8. C) 60 units and $9. D) 60 units and $14.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
If you operated a small bakery, which of the following would be a variable cost in the short run?
A. Annual lease payment for use of the building B. Interest on business loans C. Baking ovens D. Baking supplies (flour, salt, etc.)