The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price. If the owner is only interested in increasing revenue, she should
a. lower the price of the cinnamon rolls.
b. leave the price of the cinnamon rolls unchanged.
c. raise the price of the cinnamon rolls.
d. reduce costs.
c
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Use the following table to answer the next question. PriceQuantity Demanded$7162534435The marginal revenue generated by the pure monopoly from selling the third unit of output is
A. $3. B. $1. C. $5. D. $6.
Which of the following does NOT describe the intended purpose of the antitrust laws of the United States?
A) to promote competition within the economic system B) to reduce the power of monopolies C) to prohibit certain economic activities that promote trade D) to restrict the formation of monopolies
A monopolistic competitor finds its profit-maximizing rate of output by
A) equating the marginal revenue from advertising with the marginal revenue from selling the good. B) setting average revenue equal to average total cost. C) equating marginal revenue and marginal cost. D) equating price and marginal revenue.
Answer the following statements true (T) or false (F)
1. expenditures included in GDP are usually less than the income component of GDP. 2. Imports constitute a minus figure in national income accounting. 3. Final sales are always larger than the GDP. 4. Personal consumption expenditures account for approximately seven-tenths of the GDP in the United States. 5. In terms of purchasing power parity, Japan has highest per capita GDP in the world.