The Rare Bird Company has a monopoly in the sale of macaws in Iowa. When the Rare Bird Company sells three macaws, its marginal revenue is $30. When the Rare Bird Company sells four macaws, its marginal revenue will be
A. greater than $30.
B. less than $30.
C. equal to $30.
D. greater than $30 if demand is elastic and less than $30 if demand is inelastic.
Answer: B
You might also like to view...
The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is
A) positive. B) negative. C) nonexistent. D) linear. E) cross-sectionally trended.
In both monopolistically competitive and perfectly competitive industries
A) firms produce products for which there are no close substitutes. B) firms are price takers. C) there are high barriers to entry. D) there are many buyers and sellers.
Under a gold standard, a discovery of gold will
A. decrease the general price level. B. increase the general price level. C. cause increased unemployment. D. cause decreased rates of economic growth.
A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. a decrease in the supply of fruitcake. B. no change in the supply of fruitcake, but the demand would increase. C. an increase in the supply of fruitcake. D. no change in the supply of fruitcake, but the demand would decrease.