Which of the following is true for a monopolist but not for a firm in perfect competition?
A. The marginal revenue curve is downward-sloping.
B. Marginal revenue equals price.
C. Economic profits are zero in the long-run.
D. The marginal revenue curve lies above the demand curve.
Answer: A
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Under certain conditions, the slope of the marginal revenue product curve reflects the combined effects of diminishing marginal returns and a declining price of the product the firm sells. What are these conditions?
a. The firm must be a price searcher in both the product market and the resource market. b. The firm must be a price searcher in the product market, regardless of whether it is a resource price searcher. c. The firm must be a price searcher in the product market but not necessarily in a perfectly competitive resource market. d. The firm must be a price searcher in a perfectly competitive product market. e. The firm must operate in a decreasing-cost industry.
(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in domestic savings?
What will be an ideal response?
The possible goods and services a consumer can afford to consume represents the:
A. consumer status. B. consumer behavior. C. consumer opportunities. D. consumer preferences.
Without the use of money, workers in an economy would:
A. probably specialize less B. be far more productive C. become more specialized D. have to spend a lot less time trading