Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, Marko's will produce
A) 0 shirts. B) 1 shirt. C) 3 shirts. D) 4 shirts.
D
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When economists use the term "big tradeoff" when discussing efficiency they are referring to the tradeoff between
A) external costs and external benefits. B) marginal cost and marginal benefits. C) producer surplus and consumer surplus. D) efficiency and fairness. E) deadweight loss and producer/consumer surplus.
In the above figure, the marginal cost of the second ton of wheat is
A) $25. B) $50. C) $75. D) none of the above
A monopoly ________
A. can choose its price and output and always has the option of price discriminating B. is a price taker and by offering a range of discounts can price discri-minate C. that produces a good that cannot be resold might choose to price dis-criminate D. book store that offers a discount on Tuesdays is price discriminating
When demand is unit elastic, a change in price will cause
A) a change in total revenue in the same direction. B) a change in total revenue in the opposite direction. C) no change in total revenue. D) a change in total revenue in either direction depending on whether the price is increasing or decreasing.