A pure monopolist is selling six units at a price of $12. If the marginal revenue of the seventh unit is $5, then the:
A. price of the seventh unit is $10.
B. price of the seventh unit is $11.
C. price of the seventh unit is greater than $12.
D. firm's demand curve is perfectly elastic.
Answer: B
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Macroeconomic models focus on the behavior of
a. individual households, business firms, and government agencies b. individual nations in the foreign trade sector c. the entire economy d. large industrial sectors, such as manufacturing e. individual business firms and government agencies
You go to a carnival in town intending to purchase rides for your children. When you get there they have an offer where everyone's first two rides are free. They obviously hope that the free rides will end up making them more money in the long run than if they charged for all rides. First, show on an indifference curve and budget line graph a solution that would make the free rides a bad idea for the company. Then, on a second graph, show a possible situation that would make the giveaway a success that should be repeated.
What will be an ideal response?
Six Sigma strive for
a. perfect attendance b. improvements in ethnic quotas c. less environmental impact d. perfection in processes and product
A negative side of a revenue-sharing plan is that it:
A. can be difficult to manage from an accounting standpoint. B. can be costly if revenues are low. C. does not induce hard or better work. D. gives no incentive for workers to minimize costs.