Stereo Sound Unlimited has a monopoly over the installation of surround sound systems. If Stereo Sound Unlimited?s total revenue from installing 10 sound systems is $20,000 and its total revenue from installing 11 sound systems is $19,000, what is the marginal revenue of the eleventh sound system?
A. -$2,000
B. -$1,000
C. $2,000
D. $3,800
Answer: B
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The general formula for computing the desired stimulus is
A. AD shortfall - the multiplier. B. AD shortfall ÷ the multiplier. C. AD shortfall + the multiplier. D. AD shortfall × the multiplier.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. According to The Principle of Comparative Advantage, Ana and Leo will be able to produce more overall if:
A. Ana specializes in fudge and Leo specializes in toffee. B. the Principle of Comparative Advantage does not hold in this example. C. Leo specializes in fudge and Ana specializes in toffee. D. both Leo and Ana specialize in fudge.
A nation can accelerate its economic growth by:
A. reducing the number of immigrants allowed into the country. B. adding to its stock of capital. C. printing more money. D. imposing tariffs and quotas on imported goods.
According to utility theory you would consume more and more of a service until your marginal utility
A. fell to the level of price. B. rose to the level of price. C. was less than price. D. was more than price.