If a seller can sell 5 units at $8 each but can sell 6 units only by lowering the price to $7 (and must sell all units at the same price), the marginal revenue from selling the 6th unit is
A) $42.
B) $7.50.
C) $7.
D) $2.
E) none of the above.
D
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If the price elasticity of demand for razors is 0.32, the demand for razors is
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. E) perfectly elastic.
With positive externality, _____
a. underproduction causes deadweight loss b. overconsumption causes deadweight loss c. net social welfare is maximized d. the true cost of a transaction is borne by the participants
Which of the following is the most likely explanation for why Mexican immigrants earn 46% less than native workers while Canadian immigrants earn 36% more than native workers in the United States?
A. The immigrant flow is negative from both countries, but there are fewer Canadian immigrants than there are Mexican immigrants. B. The immigrant flow is negative from both countries, but there are more Canadian immigrants than there are Mexican immigrants. C. The immigrant flow is positively selected from Mexico but negatively selected from Canada. D. The immigrant flow is positive from both countries, but there are fewer Canadian immigrants than there are Mexican immigrants. E. The immigrant flow is negatively selected from Mexico but positively selected from Canada.
Economic contractions during the period from 1950 to 2007
A. were longer than prior contractions. B. were deeper (in terms of Real GDP) than prior contractions. C. produced larger increases in unemployment than did prior contractions. D. were less frequent than prior contractions.