When the demand curve is a downward sloping straight line, the slope of the marginal revenue curve is
A. always equal to one.
B. half as steep as the demand curve.
C. twice as steep as the demand curve.
D. the same as the slope of the demand curve.
Answer: C
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Auctions are valuable for selling items such as
a. Art b. Antiques c. Custom jewelry d. All of the above
In the middle portion of the long-run average cost curve, the flat portion of the curve indicates that economies of scale have been exhausted. In this situation, called ______________, allowing all inputs to expand does not much change the average cost of production.
a. diseconomies of scale b. constants of production c. average costs of production d. constant returns to scale
Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 10 units of capital and 10 units of labor are employed?
A. 4 B. 3 C. 45 D. 7
In a perfectly competitive labor market, the industry demand curve is ________ and the industry supply curve is ________.
A. vertical; perfectly elastic B. downward sloping; upward sloping C. perfectly elastic; upward sloping D. upward sloping; downward sloping