The marginal revenue curve facing a monopolistically competitive firm
A) lies on its demand curve.
B) lies above its demand curve.
C) lies below its demand curve.
D) is equal to its price curve.
E) is parallel to its demand curve.
C
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Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor, to help him
Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, what would her variable cost include?
A. The cost of the fabric B. The sewing machine C. The measuring board D. Her variable cost would be zero if she produced zero bags.
If the marginal product of labor rises, the marginal cost of output
a. rises b. falls c. remains constant d. rises and then falls e. dampens
If wage rates fall at the same time that labor productivity increases, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS falls. B) SRAS remains constant. C) SRAS rises. D) SRAS may rise, fall, or remain constant.