When the demand curve is a downward sloping straight line, the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis is ________ the quantity at which the demand curve intersects the horizontal (quantity) axis.
A. equal to
B. twice
C. four times
D. half
Answer: D
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The figure above shows depicts the marginal revenue and costs of a perfectly competitive firm. The price the firm charges is
A) $4 per unit. B) $8 per unit. C) $16 per unit. D) None of the above answers is correct.
All other things being equal, wages will be higher when
a. employers provide less capital for their workers to use. b. workers choose not to obtain signals like education. c. workers possess less human capital. d. the job has unpleasant or risky aspects.
At Nick's Bakery, the cost to make a cheese danish is $1.50 per danish. As a result of selling ten danishes, Nick experiences a producer surplus in the amount of $20 . Nick must be selling his danishes for
a. $2.00 each. b. $0.50 each. c. $3.50 each. d. $5.00 each.
The price elasticity of demand for health care is such that an increase in the price of health care will:
A. decrease total health care expenditures. B. increase total health care expenditures. C. shift the demand for health care rightward. D. shift the demand for health care leftward.