XYZ Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,400. The marginal revenue of the third color printer sold is
A. $200.
B. $300.
C. $400.
D. $1,300.
Answer: C
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Which of the following is the most important source of revenue for the federal budget?
A. The corporate income tax. B. Social Security and unemployment taxes. C. The federal personal income tax. D. Sales tax.
What factor(s) enable a monopoly to make an economic profit in the long run?
What will be an ideal response?
As long as a market is contestable, then even if it has only a few sellers, the
a. threat of new entrants will prevent the prices from rising above the competitive level. b. producers will be able to charge prices that are high enough to produce long-run economic profits. c. producers will not face new competition because the barriers to entry are high. d. market will never be expected to come close to the competitive result.
A firm's short-run supply curve is its marginal cost curve above its average variable cost curve.
Answer the following statement true (T) or false (F)