A monopoly will price its product:
a. where total revenue is maximized.
b. where total costs are minimized.
c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.
d. at that point on the market demand curve which intersects the marginal cost curve.
c
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The marginal benefit of an activity is
i. the benefit from a one-unit increase in the activity. ii. the benefit of a small, unimportant activity. iii. measured by what the person is willing to give up to get one additional unit of the activity. A) i only B) ii only C) ii and iii D) i and iii E) iii only
Sue's Surfboards is the sole renter of surfboards on Big Wave Island. If marginal revenue is positive at the number of surfboard rentals made each hour, then Sue's Surfboards
A) must face an elastic demand for surfboard rentals. B) must face an inelastic demand for surfboard rentals. C) can increase its total revenue by increasing the price of rentals. D) must face a unit elastic demand for surfboard rentals.
Oligopolies feature
a. the absence of barriers to entry b. extensive competition c. the goal of profit maximization d. strategic interaction of firms e. product differentiation
The long-term bond rate is ________ than the short-term rates, and it fluctuates _________ than the short-term rates.
Fill in the blank(s) with the appropriate word(s).