The Do It Yourself Hardware Store is a monopolistically competitive firm. Its marginal revenue curve
A. lies below its demand curve intersecting the quantity axis at the same point at which the demand curve intersects it.
B. lies below its demand curve intersecting the quantity axis midway between the origin and the point at which the demand curve intersects it.
C. is identical to its demand curve.
D. is below its demand curve if demand is elastic and above the demand curve if demand is inelastic.
Answer: B
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A) 12%. B) 38%. C) 70%. D) 98%.
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What will be an ideal response?
If total utility increases by smaller and smaller amounts as more units of a product are consumed, then marginal utility is:
a. decreasing and is a negative amount. b. decreasing and is a positive amount. c. zero. d. increasing and is a negative amount. e. increasing and is a positive amount.
In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a
a. public good. b. societal good. c. private good. d. normal good.