For a monopoly producing any output level greater than one, the marginal revenue curve:
A. is minimized when total revenue is maximized.
B. lies above the average revenue curve.
C. lies below the demand curve.
D. is the same as the demand curve.
C. lies below the demand curve.
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Refer to Figure 10-1. Which of the following statements is true?
A) Quantities Q0 and Q1 are the utility-maximizing quantities of hoagies at two different prices of hoagies. B) Quantities Q0 and Q1 are derived independently of the utility-maximizing model. C) Quantity Q0 could be a utility-maximizing choice if the price is $5.75, but quantity Q1 may not be because we have no information on the marginal utility per dollar when price changes. D) Quantities Q0 and Q1 may not necessarily be the utility-maximizing quantities of hoagies at two different prices because we have no information on the consumer's budget or the price of other goods.
Private goods are nonexclusive goods
Indicate whether the statement is true or false
In a market operated by a cartel, if price is $30 which of the following must be true?
Proponents of electric utility industry deregulation argued that deregulation was justified because
A. Improvements in technology allowed the development of high-voltage transmission power lines. B. Other industries had been deregulated. C. Improvements in technology allowed easy transmission of electricity through the deregulated telephone system. D. Improvements in technology allowed easy transmission of electricity using satellite technology.