When a perfectly competitive firm sells additional units of output, ________, and when a monopolist sells additional units of output, ________.
A. total revenue always rises; total revenue could rise, fall, or remain unchanged
B. total revenue rises; total revenue falls
C. total revenue does not change; total revenue rises
D. marginal revenue stays the same; marginal revenue rises
Answer: A
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At Tony's Car Wash, a team of four workers washes and rinses each car by hand, and one worker dries the car by hand. Which of the following is true?
a. Tony will have no principal-agent problems. b. Tony will have more principal-agent problems in washing and rinsing than in drying the cars. c. Tony will have more principal-agent problems in drying than in washing and rinsing the cars. d. Tony will be awash in severe principal-agent problems. e. Tony will have no incentive to monitor the car wash.
If a private market determines the quantity of smallpox vaccinations, which of the following is true?
a. The equilibrium quantity is too low for efficiency. b. The equilibrium price and quantity are too high for efficiency. c. The equilibrium price is efficient. d. The equilibrium quantity is too high for efficiency. e. The equilibrium price and quantity are efficient.
In general, the more money in existence, the better it functions as a store of value
a. True b. False Indicate whether the statement is true or false
Which of the following facts is not a basis for prospect theory in behavioral economics?
A. People evaluate gains and losses in relation to the status quo, not in absolute terms B. People feel losses much more intensely than they feel gains C. People experience diminishing marginal disutility for losses D. People do not experience diminishing marginal utility for gains