When a demand curve is a downward sloping straight line, the slope of the demand curve is ________ the marginal revenue curve.
A. half as steep as
B. always equal to the slope of
C. the same as the slope of
D. twice as steep as
Answer: A
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Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $4,000?
A) 0.7 B) -0.45 C) 1.45 D) 0.69
Which of the following explains most accurately why the firm's short-run marginal cost curve will eventually rise?
a. As more of the variable factor is used, its price will rise. b. When diminishing marginal returns set in, it will take ever-larger quantities of the variable resources to produce an additional unit of output. c. As the variable factor is used more intensely, its marginal product will rise, causing an increase in marginal costs. d. As the size of the firm increases, the operational efficiency of the firm declines, causing an increase in marginal costs.
A normative economist might conclude that
a. a lottery can be conducted in several ways b. certain types of lotteries raise millions of dollars c. a lottery is a bad policy because it burdens the poor d. a lottery is good because it separates people from their money
The market demand for labor will be
A) insensitive to the wage rate in the short run. B) downward sloping. C) the inverse of the market demand for output. D) perfectly inelastic.