You sell your good in a perfectly competitive market where the market price is $33.00. When you sell 100 units your total revenue is $3,300. When you sell 101 units:
A. total revenue increases by less than $33.
B. total revenue increases by exactly $33.
C. total revenue increases by more than $33.
D. total revenue may increase or decrease.
Answer: B
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Refer to the scenario above. John should submit a bid of ________
A) $400 B) $300 C) $100 D) $200
The president wishes to increase spending for education by $4 billion but also maintain a balanced budget. Therefore, taxes will also be increased by $4 billion. What will happen to GDP?
a. It will increase. b. It will remain the same. c. It will decrease. d. It's impossible to know without the multiplier.
A favorable supply shock abroad would
a. increase U.S. imports and decrease aggregate demand. b. decrease U.S. net exports and reduce aggregate supply. c. decrease U.S. net exports and decrease national income. d. increase U.S. net exports and increase aggregate demand.
Figure 7-7
In Figure 7-7 at 100 units, AFC equals
a.
10.
b.
100.
c.
180.
d.
1,000.