When a firm sells 1 million coat hangers, its total revenue is $2 million. When it sells 2 million coat hangers, its total revenue is $3.5 million. Is this firm a price taker? Explain
No. When the firm sells 1 million coat hangers its average revenue (price) is $2 . When it sells 2 million coat hangers its average revenue is $1.75 . Because the firm's average revenue is not constant at the two different levels of output, it is not a price taker.
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Lines, ration coupons, and black markets are byproducts of a
A. price floor. B. price ceiling. C. free market. D. barter economy.
The Federal Funds Committee executes the purchases and sales of government securities decisions of the Federal Reserve
a. True b. False Indicate whether the statement is true or false
The supply curve of labor is upward sloping because the marginal revenue produced by labor is greater than one
Indicate whether the statement is true or false
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.