Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. If Hi Phi Unlimited?s total revenue from installing 20 sound systems is $30,000 and its total revenue from installing 21 sound systems is $30,800, what is the marginal revenue of the twenty-first sound system?
A. -$1,500
B. -$700
C. $800
D. $1,467
Answer: C
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Minimum wage laws:
A) can cause the quantity demanded to exceed the quantity supplied of labor. B) are used to solve the problem of wage rigidity. C) can give rise to wage rigidity. D) help in equating the quantity of labor demanded and supplied.
Refer to the above graph. It represents a monopolistically competitive firm in a constant-cost industry. In long-run equilibrium this firm will:
A. continue to earn economic profits because it has monopolistic power to set its price. B. break even because its demand curve will fall and become more elastic as it loses sales to other firms entering the market. C. become a perfectly competitive firm because there are no significant barriers to entry. D. break even because average total cost (ATC) and marginal cost (MC) will increase as more firms enter the market.
A bowed Production Possibilities Curve (PPC) indicates
A. only 1 good is always being produced. B. changing technology. C. that the trade-off between the 2 goods is not constant. D. inefficient production.
Refer to the below graph, where TP = total product and L = labor input. The marginal product of labor (MP):
A. Is constant at all levels of L
B. Increases at an increasing rate as L increases
C. Decreases as the labor input L increases
D. Increases at a decreasing rate as L increases