A single-price monopoly has a marginal revenue curve that is
A) horizontal and equal to price.
B) downward sloping and lies below the demand curve.
C) upward sloping and is the same as its supply curve.
D) downward sloping and lies above the demand curve.
E) vertical at the profit-maximizing quantity.
B
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If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
a. .25. b. 1.5. c. .5. d. 1/3. e. 2/3.
Owners of a coffee shop finds that they can sell 150 donuts a day when the price of a donut is $1.20. When they price donuts at $1, they sell 170 donuts. The absolute value of the price elasticity of demand for donuts is
A) 0.69. B) 1.45. C) 1.00. D) infinity.
The theoretical proposition that the price level is just a numeraire and should not affect aggregate expenditures suggests the AD curve is:
A. downward sloping. B. upward sloping. C. horizontal. D. vertical.
If you purchase a gift worth $25 for your sister, but your sister would be willing to pay only $10 is she bought the item for herself, then the:
A. Total utility of the gift is $35 B. Total utility of the gift is $15 C. Marginal utility of the gift is $15 D. Loss of value in the gift is $15