If the inverse demand function for a monopoly's product is p = a - bQ, then the firm's marginal revenue function is
A) a.
B) a - (1/2)bQ.
C) a - bQ.
D) a - 2bQ.
D
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Before a market allocation of goods on the production possibilities curve can be judged efficient, one must evaluate “what” goods the market produced.
Answer the following statement true (T) or false (F)
If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that: a. Goods X and Y are complements. b. Goods X and Y are substitutes
c. Goods X and Y are normal goods. d. the price of Good Y will increase.
What factors are held constant along a given demand curve for a good?
a. the price of the good b. the technology used to produce the good c. the supply of the good d. consumer incomes and the prices of other goods
With respect to Figure 7-3, the horizontal distance by which the IS curve will shift with a change in taxes is equal to
a. ?T (? b/1 – b). b. ?T(1/1 – b). c. ?T(1 – b/1 – b). d. ?T(1 + b/1 + b).