If a monopolist can sell 7 units when the price is $4 and 8 units when the price is $3, then the marginal revenue of selling the eighth unit is equal to
a. $3.
b. $4.
c. $24.
d. -$4.
d
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Ceteris paribus, in the short run following a decrease in the rate of growth in aggregate demand, we would expect to see an increase in the rate of unemployment and a decrease in the rate of inflation
Indicate whether the statement is true or false
Which of the following is an effect of an increase in the price level in an economy?
a. The real value of dollar-denominated assets will fall b. The aggregate expenditure line will shift upward. c. The equilibrium real gross domestic product will increase. d. There will be a downward movement along the aggregate demand curve of the economy. e. The aggregate demand curve of the economy will shift rightward.
Which of the following would be an example of a principal trying to deal with a moral hazard problem?
a. The parents of an infant secretly place video cameras in their house before the baby-sitter arrives. b. An insurance company checks police records to determine if its policyholders have received traffic citations. c. An employer examines his workers' output on a daily basis. d. All of the above are correct.
How does an increase in the savings rate affect the multiplier in an economy, if at all?
a) The multiplier would turn from positive to negative. b) The multiplier would stay the same. c) The multiplier would increase. d) The multiplier would decrease.