William is a wheat farmer and wheat sells in a perfectly competitive market, with an equilibrium price of $5 per bushel. Its marginal revenue:
a. is greater than $5
b. is $5.
c. is less than $5.
d. cannot be determined from the above information.
b
You might also like to view...
If all resources used in the production of a product are increased by 20% and total output increases by 20%, then the firm must be experiencing
A. diseconomies of scale. B. economies of scale. C. increasing average total costs. D. constant returns to scale.
If Callum is consuming his utility maximizing bundle and the price of one good rises, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Callum do?
A) MU/P has increased and Callum should buy less of this good. B) MU/P has decreased and Callum should buy less of this good. C) MU/P has increased and Callum should buy more of this good. D) MU/P has decreased and Callum should buy more of this good.
In the generalized dividend model, if the expected sales price is in the distant future
A) it does not affect the current stock price. B) it is more important than dividends in determining the current stock price. C) it is equally important with dividends in determining the current stock price. D) it is less important than dividends but still affects the current stock price.
Which three macroeconomic variables together best describe the health of the economy?
A. Output, GDP, and inflation B. Output, inflation, and prices C. GDP, unemployment, and employment D. Output, prices, and employment