A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.90 per unit. The marginal revenue of the 151st unit of output is
a. -$5.10.
b. -$0.10.
c. $2.45.
d. $5.10.
a
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A fractional reserve banking system is one in which banks hold less than 100 percent of ________ as reserves
A) shareholder equity B) securities C) deposits D) loans
Economic experience since 1973 indicate that, under floating exchange rates
A) large and persistent departures from external balance were not prevented. B) large and persistent departures from external balance were prevented. C) changes in exchange rates failed to act as automatic stabilizers. D) reduced monetary policy autonomy. E) monetary policy autonomy was protected.
Suppose there are two factories on a river, and both need clean water for their production processes. The upstream factory takes in clean water and dumps dirty water back into the river
The downstream firm must clean up the water it gets from the river before using it. In this situation A) the private costs of the downstream factory are more than the private costs of the upstream factory, but for both factories private costs and social costs are the same. B) the social costs are greater than the private costs for the upstream firm, while the social costs are less than the private costs for the downstream firm. C) the upstream factory's private costs are less than its social costs, and its external costs are borne by the downstream factory. D) the internal costs of the upstream factory are externalized by the downstream factory, which then passes them on to its customers.
When new farmers enter the wheat industry, the equilibrium price of wheat
A. always falls. B. falls only if existing firms gang up on the entrant. C. falls only if existing firms are earning no economic profit. D. falls only if the new firm is more efficient than existing firms.