The Acme Company is a perfect competitor in its input markets and a monopolist in its output market. The marginal product of labor is 20 and the price of Acme's output is $10. For Acme Company, the marginal revenue product of labor is
A) less than $10.
B) $10.
C) $20.
D) less than $200.
E) $200
D
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In order to compare benefits today with future costs, we need to know:
A. the interest rate. B. the rate of inflation. C. the uncertainty associated with future benefits and costs. D. All of these statements are true.
The price effect is smaller when there:
A. are fewer firms. B. is more demand. C. is less demand. D. are more firms.
Refer to the above graphs. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. Which graph best illustrates the price elasticity of demand for this good?
A. Graph A B. Graph B C. Graph C D. Graph D
Explain why it was necessary to pass the Clayton Act when the Sherman Act had already addressed the antitrust issue.
What will be an ideal response?