The figure below shows the retail demand for running shoes. If the distributors (the retailers) are perfectly competitive and the marginal cost of distributing the shoes is $20 per pair, the manufacturer's wholesale demand curve lies
A) $20 above the retail marginal revenue curve, MR.
B) $20 below the retail demand curve, D.
C) $20 below the retail marginal revenue curve, MR.
D) $20 above the retail demand curve, D.
B) $20 below the retail demand curve, D.
You might also like to view...
A decrease in demand is represented by a
a. movement downward and to the right along a demand curve. b. movement upward and to the left along a demand curve. c. rightward shift of a demand curve. d. leftward shift of a demand curve.
If price rises, what happens to the quantity demanded for a product?
a. It does not change. b. It decreases. c. Uncertain--economic theory has no answer to this question. d. It increases.
The factor-price equalization theorem tells us that free trade between two countries should result in
A. all workers in the two countries having the same skill level. B. all workers in the two countries earning the same wage rate. C. all workers of the same skill level earning the same wage rate in the two countries. D. all input prices being equal within each country.
As disposable income increases, consumption:
A. decreases. B. may either increase or decrease depending on the wealth effect. C. increases. D. may either increase or decrease depending on the mpc.