Suppose the table below describes the relationship between price and quantity demanded for a monopolist.QuantityPrice1$102$93$84$75$66$57$48$3 The marginal revenue of the fifth unit of output is:
A. $2.
B. $30.
C. -$2.
D. $6.
Answer: A
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
A firm in perfect competition is a price taker because
A) there are no good substitutes for its good. B) many other firms produce identical products. C) it is very large. D) its demand curves are downward sloping. E) its demand curve is vertical at the profit-maximizing quantity.
The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. Without regulation, ________ tons of paper will be produced and the price will be ________ per ton
A) 3; $150 B) 4; $100 C) 4; $200 D) None of the above answers is correct.
Refer to Figure 15-2. If the firm's average total cost curve is ATC1, the firm will
A) suffer a loss. B) break even. C) make a profit. D) face competition.