Which of the following statements regarding equilibrium in the markets for capital and for a natural resource used in producing a good is true?
A) The marginal revenue product of capital will equal the rental price of capital and the marginal revenue product of the natural resource will equal the price of the natural resource.
B) The rental price of capital will equal the price of the natural resource.
C) The marginal product of capital will equal the rental price of capital and the marginal product of the natural resource will equal the price of the natural resource.
D) The marginal revenue product of capital will equal the marginal revenue product of the natural resource.
A
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The above figure represents the cost and demand curves for a natural monopoly that is regulated using a marginal cost pricing rule
a) What is the quantity? b) What price is charged? c) What area represents the consumer surplus when the firm is regulated using a marginal cost pricing rule? d) What distance represents the firm's loss per unit when the firm is regulated using a marginal cost pricing rule?
If incomes grow during the next year, what will happen in the market for RVs? (Assume that RVs are normal goods.)
What will be an ideal response?
By April 2010
A) only about 10 percent of foreign exchange trades were against euros. B) only about 24 percent of foreign exchange trades were against euros. C) only about 39 percent of foreign exchange trades were against euros. D) only about 42 percent of foreign exchange trades were against euros. E) only about 60 percent of foreign exchange trades were against euros.
The supply schedule assumes that factors other than:
A. price remain the same. B. price must change. C. supply remain the same. D. supply must change.