A monopolist changes price from $1 to $2 and sells 10 fewer units. The marginal revenue is
A) $10.
B) -$10.
C) $0.
D) impossible to determine with the information provided.
D
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Surgeons earn more than janitors because: a. of the negative correlation between level of education and productivity
b. of the inverse relationship between wages and productivity. c. the accumulation of human capital leads to an improvement in productivity. d. of the negative relation between productivity and the amount of physical capital. e. surgeons spend more time at work than janitors.
A U.S. fast food restaurant chain sells dollars for Argentinean pesos and then uses the pesos to buy Argentinean beef. Which of the following do these transactions increase?
a. Argentinean net capital outflow and Argentinean net exports b. only Argentinean net exports c. only Argentinean net capital outflow d. neither Argentinean net exports nor Argentinean capital outflow
Hal is the CEO of a firm with a monopoly on a gadget used by kayakers. Hal sells about 200,000 of his products annually, but he would like to make twice that amount available at the same price, hoping to double his income. If we look at the demand curve for Hal’s firm, what will happen as he produces twice as many products?
a. The curve will become vertical. b. The curve will slope upward. c. The curve will slope downward. d. The curve will remain horizontal.
The higher the expected rate of inflation,
A. the higher the real and nominal rates of interest. B. the higher is the real rate of interest. C. the lower is the nominal rate of interest. D. the lower is the real rate of interest.