In perfect competition, each additional unit of output that a firm sells will yield a marginal revenue that is
A. less than price.
B. equal to price.
C. equal to average total cost.
D. greater than price.
Answer: B
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Which of the following is an important factor affecting economic growth?
A) the rate of saving B) exchange rates C) the rate of interest D) the level of prices
Reliable information is
a. costly for consumers, but not for producers b. costly for producers and consumers c. freely available d. costly for producers, but not for consumers e. not relevant to economic decision making
When considering different tax levels, the revenue-maximizing point will be reached more:
A. slowly when demand is more elastic. B. quickly when demand is more elastic. C. quickly when demand is less elastic. D. quickly if demand is unit elastic.
A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each. If the components in each six-pack costs the bottling company $1.50, the value added, to each six-pack, by the bottling company is:
a. $2.00. b. $1.50. c. $1.25. d. $1.00. e. $0.50.