For a monopolistically competitive firm
A) price equals marginal revenue at all levels of output.
B) price is less than marginal revenue at all levels of output.
C) price is greater than marginal revenue at all levels of output except for the first unit.
D) the demand curve is perfectly inelastic and marginal revenue is zero.
Answer: C
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California voters and legislators frequently debate about the true cost of water in the course of trying to establish state policy to govern the use of water. The issue is confusing because
A) all water is ultimately a free gift of nature. B) the cost of water is infinite. C) water in itself, considered simply as a chemical compound, cannot be assigned any specific cost. D) we cannot settle a question that is entirely a matter of opinion.
Baxter International, a manufacturer of hospital supplies, acquired American Hospital Supply, a distributor of hospital supplies. This is an example of
A) a two-dimensional merger. B) a conglomerate merger. C) a vertical merger. D) a horizontal merger.
Technological spillover ________
A) is made possible by the nonrivalry of ideas B) generates an increase in both capital and labor C) is caused by population growth D) is caused by population decline
A change in the price of a good will shift the indifference curves.
Answer the following statement true (T) or false (F)