The total revenue curve for a firm is given by TR = 2Q.
A. The firm may be a monopolist or a perfectly competitive firm.
B. The firm is definitely not a monopolist.
C. The firm is definitely a monopolist.
D. One cannot tell from the equation what market form applies.
Answer: B
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What is the difference between comparative advantage and absolute advantage?
What will be an ideal response?
Economies of scale exist whenever long-run average costs:
a. Increase as output is increased b. Remain constant as output is increased c. Decrease as output is increased d. Decline and then rise as output is increased e. None of the above
The cost of holding money balances increases when
a. the inflation rate decreases. b. the nominal interest rate increases. c. the nominal interest rate decreases. d. nominal GDP is far from full employment.
Using tradable allowances instead of quotas may be a better solution to the provision of common resources because they:
A. allow the government to set a specific amount of the good to be consumed, while quotas do not. B. ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not. C. assign private property rights-and an incentive, as owners, which means common resource now get overused, and quotas do not. D. allocate the good in a less efficient way, and quotas do not.