In both perfectly competitive and monopoly markets, the price per unit of a good is equal to the
average revenue.
You might also like to view...
According to the Hotelling Principle, the price of a nonrenewable resource is expected to
A) rise at a rate higher than the interest rate. B) rise at a rate lower than the interest rate. C) rise at a rate equal to the interest rate. D) fall at a rate equal to the interest rate.
The market-clearing curve for complementary goods is:
A. horizontal. B. downward-sloping. C. vertical. D. upward-sloping.
Given the following formula for the Taylor rule:Target federal funds rate = natural rate of interest + current inflation + 1/2(inflation gap) +1/2(output gap) If output in the economy were to fall by an additional one percent below potential, the target federal funds rate would:
A. Increase by 1.5%. B. Remain at 2.5%. C. Decrease by 0.5%. D. Decrease by 1.5%.
At the Larson Bakery the marginal products of the first, second, and third sales clerks are 20, 17, and 11 customers served, respectively. The total product (number of customers served) of the three sales clerks is
A. 11. B. 40. C. 46. D. 48.