For a monopoly firm,
a. price always equals marginal revenue.
b. price always exceeds average revenue.
c. any price-quantity combination will maximize profits.
d. None of the above is correct.
d
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Figure 7-1
. In Figure 7-1, which graph best represents total physical product with diminishing returns?
A. 1 B. 2 C. 3 D. 4
Which of the following is the correct formula to calculate productivity?
a. Output + quantity of input b. Output ? quantity of input c. Quantity of input ÷ output d. Output ÷ quantity of input e. Output × quantity of input
Suppose that in 2011 nominal GDP increased and real GDP decreased relative to the year 2010 . It can be concluded that:
a. the economy experienced inflation and the total production of goods and services increased. b. the economy experienced deflation and the total production of goods and services increased. c. the economy experienced inflation and the total production of goods and services decreased. d. the economy experienced deflation and the total production of goods and services decreased.
A monopolistically competitive firm in the long run will
a. have a demand curve tangent to its AC. b. have a demand curve below its AC. c. have a demand curve above its AC. d. operate where excessive profit can be achieved.