Refer to the above table. If the product the firm produces sells for a constant $2 per unit, the marginal revenue product of the third unit of the resource is:
A. $6
B. $12
C. $18
D. $24
D. $24
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If orders exist in large volume, then the market has
A) depth. B) breadth. C) resiliency. D) None of the above.
Refer to Scenario 5.6. The expected utility of income from research is
A) u($275,000 ). B) u($95,000 ). C) [u($500,000 ) + u($50,000 )]/2. D) .1 u($500,000 ) + .9 u($50,000 ). E) dependent on which outcome actually occurs.
Consider the following statements when answering this question. I. If no consumer has a kinked demand curve for CDs, then the market demand curve for CDs cannot be kinked either. II
If at a price of $10, every consumer has inelastic demand, then at that price the market demand for CDs will be inelastic too. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. In equilibrium, producer surplus is equal to:
A. 3,500. B. 1,500. C. 2,500. D. 5,000.