When the marginal revenue resulting from a decrease in price is negative, demand for the product is:
A) elastic.
B) unit elastic.
C) inelastic.
D) cannot be determined without more information.
C
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In a competitive market equilibrium the ________ equals the ________ of the last unit sold
A) marginal benefit; marginal cost B) total profit; marginal benefit C) profit; selling price D) total cost; marginal cost
A social cost that is not fully paid by the individual using an automobile is
A) traffic congestion. B) gasoline and oil. C) insurance. D) depreciation of the vehicle.
If the firm in the given graph were to maximize profits, it would:
These are the cost and revenue curves associated with a firm.
A. produce Q1 and charge P3.
B. cause deadweight loss.
C. earn zero economic profits.
D. All of these statements are true.
Which of the following statements about market economies is correct?
a. In a market economy, no one is looking out for the economic well-being of society as a whole. b. Market economies are characterized by decentralized decision making and self-interested decision makers. c. Market economies have proven remarkably successful in promoting overall economic well-being. d. All of the above are correct.