Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $50 to $650 per bicycle. The marginal revenue of the 11th bicycle is
A. $7,150.
B. -$50.
C. $150.
D. $50.
Answer: C
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Indicate whether the statement is true or false
Which of the following would tell us that resources are not flowing to their highest valued uses?
A) short-run economic profits B) short-run economic losses C) song-run economic profits D) Some firms are just breaking even.
While the __________ is not important, the _________ can have a big effect on economic behavior.
A. price level; unpredicted change in the price level B. unpredicted change in the price level; price level C. price level; predictable change in the price level D. predictable change in the price level; price level
Which statement is true?
A. The average workweek is about 50 percent lower than it was in 1900. B. The average workweek is about the same as it was in 1900. C. Most Americans work more hours per year than do most Western Europeans. D. Most American workers work less hours than workers in other industrialized countries.