Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited?s total revenue from installing 20 sound systems is $30,000 and its total revenue from installing 21 sound systems is $33,800. The price of the 21st sound system is ________ the marginal revenue of that system.
A. less than
B. greater than
C. equal to
D. indeterminate from the given information
Answer: B
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One disadvantage of a sole proprietorship as a form of business organization is that
a. sole proprietorships cannot lower the transaction costs associated with contracting with resource owners b. sole proprietorships are less efficient than corporations, because they are less specialized in production c. owners of sole proprietorships can lose all their personal assets if the business is sued or fails d. owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm e. owners of sole proprietorships generally have very little control over how they operate their businesses
Labor productivity in the United States has: a. been growing at ever-increasing rates since World War II
b. been growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II. c. been falling for the last 50 years. d. remained largely unchanged over the last 50 years. e. been growing more rapidly in the last 50 years than in most other developed economies.
Allowing free trade can lead to greater output because of the principle of: a. absolute advantage
b. rule of 70. c. comparative advantage. d. scarcity.
Public saving is T - G, while private saving is Y - T - C
a. True b. False Indicate whether the statement is true or false