Refer to the following graph.
If the demand curve is curve D for a monopoly, the marginal revenue curve is:
A. B, which intersects the x-axis at 1/2 the quantity where the demand curve intersects the x-axis.
B. A, which intersects the x-axis at 1/4 the quantity where the demand curve intersects the x-axis.
C. D, which intersects the x-axis at the same quantity where the demand curve intersects the x-axis.
D. C, which intersects the x-axis at 3/4 the quantity where the demand curve intersects the x-axis.
Answer: A
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Oligopolists often use price discrimination to increase economic profit. Which of the following is not considered to be price discrimination?
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Pollution is a relatively new phenomenon
a. True b. False Indicate whether the statement is true or false
In the above graph, what is the marginal rate of technical substitution at point D?
A. greater than 1.5 B. less than 2.5 C. less than 1.5 D. greater than 2.5