Describe the marginal revenue curve in relationship to the demand curve for a monopoly. Why is it like that?
What will be an ideal response?
The marginal revenue curve lies below the demand curve because the monopolist must decrease price in order to sell more output. Therefore each additional unit sold yields its price less the decreased price for each previous unit sold.
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An economy has the income shares information in the table above. Which of the following is TRUE?
A) The information in the table represents the income distribution in the United States. B) Income in the U.S. economy is more equally distributed than that represented in the table. C) Income in the U.S. economy is less equally distributed than that represented in the table. D) The information in the table represents the wealth distribution in the United States.
Explain how the marginal product and average product of labor change as the labor employed increases (a) initially and (b) eventually
What will be an ideal response?
A federal system of governments can limit the problems posed by special interests because _____
a. it provides voters with other governments to compare to their own b. it increases the number of legislatures to oversee the bureaucracies c. it decreases rational ignorance d. b and c
Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's total costs will be:
A. $300.
B. $248.
C. $198.
D. $126.