If a monopolist could sell 5 units at $6 and 6 units at $5:
a. marginal revenue for the 6th unit is $5
b. marginal revenue for the 6th unit is zero.
c. demand is unit elastic over that range of prices.
d. both (b) and (c) are true.
d
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Research confirms that government provision of infrastructure:
A. promotes economic growth. B. increases human capital. C. leads to reduced spending on research and development. D. hinders economic growth.
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Ten percent of the used cars sold will be lemons.
Horizontal and vertical demand curves
A) have constant elasticities. B) are not possible in the real world. C) have elasticities that change with price. D) cannot have their elasticities computed using the point method.
The learning curve
A) is really no different from a marginal cost curve. B) calculates average cost at a particular point in time. C) shows the decrease in unit cost as more of the same product is produced over time. D) None of the above