Exhibit 9-1 Monopolist's demand curve
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In Exhibit 9-1, the marginal revenue curve corresponding to the monopolist's demand curve would be a straight line drawn between points:
A. A to B.
B. A to D.
C. C to B.
D. C to D.
Answer: B
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A) a natural barrier to entry. B) a legal barrier to entry. C) price discrimination. D) All of the above answers are correct.
The price of lemonade is $0.50; the price of popcorn is $1.00. If Fred has maximized his utility by purchasing lemonade and popcorn, his marginal rate of substitution will be:
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A) quantity supplied to rise. B) the wage rate to fall. C) quantity demanded to fall. D) the wage rate to rise.
The best example of a transfer payment would be ___.
A. govenment investment B. government purchases C. government giving funds to the unemployed D. the government paying its workers