An oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will:
A. increase total revenue by increasing price but lower total revenue by decreasing price.
B. decrease total revenue by either increasing or decreasing price.
C. increase total revenue by either increasing or decreasing price.
D. increase total revenue by decreasing price but lower total revenue by increasing price.
Answer: B
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Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient. B) All consumer surplus goes to the monopoly. C) Deadweight loss is created. D) There is a redistribution of consumer surplus to the monopoly.
A given change in disposable income would have the greatest effect on consumption with which of the following marginal propensities to consume?
a. 0.4 b. 0.6 c. 0.8 d. 0.2
Total cost divided by total output yields:
a. marginal cost. b. average variable cost. c. average fixed cost. d. average total cost.
Refer to the table below. The marginal benefit of the 5th unit of activity is:Units ofActivity TotalCostTotalBenefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. $10 B. $5 C. $44 D. $50