A purely competitive firm currently producing 20 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be:
A. $120
B. $240
C. $360
D. Indeterminate based on the given information
C. $360
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Marginal utility is the
A) usefulness of a product. B) utility that a person receives from the consumption of goods and services. C) change in utility that results from a one-unit change in the quantity of a good consumed. D) change in utility that results from a one-unit change in the price of a good consumed.
How does the liquidity premium theory explain an upward sloping yield curve during normal economic times?
What will be an ideal response?
Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon rises for some reason, then, everything else equal: a. the price of sausage will rise
b. the price of sausage will fall. c. the resources used to raise pigs will become less expensive. d. the demand for bacon will decrease.
In which of the following cases can we be certain that a natural resource has become scarcer?
a. both the demand for the resource and the supply of the resource have increased b. both the demand for the resource and the supply of the resource have decreased c. demand for the resource is unchanged and the supply of the resource has increased d. the demand for the resource has decreased and the supply of the resource is unchanged