On the above graph, if the oligopolist's MC curve shifts from MC1 to MC2, the firm will charge:
A. the same price and sell more output; total revenue will increase.
B. the same price and sell the same amount of output; total revenue will remain the same.
C. a higher price and sell less output; it can't be determined whether total revenue will increase.
D. a higher price and total revenue will increase.
Answer: B
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When a good gets better from one year to the next, the CPI has a what is called
A) commodity substitution bias. B) outlet substitution bias. C) magnitude of change bias. D) new goods bias. E) quality change bias.
The extra cost associated with producing or consuming the next unit is called the:
A. variable cost. B. marginal cost. C. utility cost. D. sunk cost.
Economic analysis indicates minimum wage legislation has
a. made it possible for any teenager who wants to work to earn almost 80 percent as much as an adult. b. made it easier for teenagers to find jobs that offer the opportunity for training. c. been an important source of increases in income since most workers earn at or near the minimum wage. d. reduced the on-the-job training opportunities available to teenagers.
A higher price level would mean ____ for a person who has a bank deposit of $2 million.
A. an increase in real income B. a decrease in real wealth C. a decrease in nominal income D. an increase in nominal income