For a firm facing a downward sloping demand curve, marginal revenue
A. falls each time prices are raised.
B. is greater at higher prices than at lower prices.
C. is at a minimum at the midpoint of the demand curve.
D. increases each time prices are lowered.
Answer: B
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The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2010 to 2012. The reference base year is 2010. The inflation rate in Syldavia from 2010 to 2011 was
A) 5.0 percent. B) -9.5 percent. C) 3.0 percent. D) 9.5 percent. E) -5.0 percent.
The biggest contribution to real U.S. GDP growth in the 1970s was due to growth in
A) total factor productivity. B) the capital stock. C) the labor force. D) both the capital stock and the labor force.
The sum of the marginal utilities of a good, at any consumption level
a. cannot be measured b. adds up to total utility c. adds up to maximum utility d. is negative because of the law of diminishing marginal utility e. is zero because marginal utility eventually becomes negative, canceling the positive values of marginal utility
Figure 8-1
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Based on the scatter diagram in Figure 8-1, if real disposable income is $800 billion, the consumption spending would be approximately
A. $800 billion. B. $650 billion. C. $540 billion. D. $420 billion.