Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $500, and if it sells three calculators its total revenue is $700. The marginal revenue of the third calculator sold is
A. $100.
B. $150.
C. $200.
D. $700.
Answer: C
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Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price?
A) consumers, who purchase more units of the product than they did before the price support program was implemented B) taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place C) producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues D) the government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program
For a competitive firm, if at least some portion of its short-run average cost curve lies below the price of the product, we can conclude that the firm
A. is earning a profit at the profit maximizing output level. B. is incurring short-run losses. C. is earning zero economic profits. D. is going to shut down.
Federal tax legislation makes it cheaper for individuals and families to pay for health care
a. by purchasing an insurance policy through their employer rather than paying for it directly with their own money. b. by purchasing an insurance policy through their employer rather than directly purchasing health insurance from the company of their choice. c. directly rather than through an insurance policy offered through their employer. d. by both a and b above.
Refer to Table 9-6. What is the required reserve ratio?
A) 5% B) 10% C) 20% D) 25%