Figure 7.2 shows a monopolist's demand curve. The marginal revenue from selling the third unit is:
A. $6.
B. $8.
C. $10.
D. $44.
Answer: A
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Which factors determine the firm's elasticity of demand?
A) Elasticity of market demand and number of firms B) Number of firms and the nature of interaction among firms C) Elasticity of market demand, number of firms, and the nature of interaction among firms D) none of the above
For a fixed proportion production function, at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is:
a. constant. b. zero. c. negative. d. a value that cannot be determined.
Leisure is
a. subject to the law of diminishing marginal utility b. usually considered an inferior good c. a complementary good with nonmarket work d. a complementary good with market work e. an irrational way to spend valuable time
When Jim adds $1,000 worth of farm equipment to his production process, he finds that his corn output increases from 200 to 350 bushels. If the price of corn is $2 per bushel, the marginal revenue product of capital is
a. $10 b. $150 c. $300 d. $350 e. $1,000