Marginal revenue equals
A) total revenue divided by output.
B) price times quantity, divided by average revenue.
C) total revenue divided by average revenue.
D) the change in total revenue from selling one more unit.
D
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Which of the following is an example of search costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee
In the figure above, suppose the government provides vouchers worth $15,000 per student per year. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________
A) exceeds; above the efficient quantity B) exceeds; below the efficient quantity C) is below; above the efficient quantity D) is below; below the efficient quantity E) equals; efficient
Government-operated firms with monopoly power
a. will necessarily meet the criteria of economic efficiency, as long as price equals average total cost. b. will always be more efficient than private firms because they do not have to make a profit. c. are likely to be inefficient since some of the monopoly power is likely to serve the interests of the governmental managers and employees. d. are highly responsive to changes in the preferences of individual consumers since consumers are also voters.
How can population changes affect demand for certain goods?
(A) People at different stages of their lives have different demands. (B) Different levels of demand will cause different prices. (C) More people demanding goods will cause prices to rise. (D) Demand will exceed supply under some population conditions.