A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.98 per unit. The marginal revenue of the 151st unit of output is
a. -$6.98.
b. -$0.02.
c. $2.45.
d. $6.98.
d
You might also like to view...
If the Fed buys government bonds from the open market, it will cause:
A) a shift of the supply curve for reserves to the right. B) a shift of the supply curve for reserves to the left. C) a downward movement along the supply curve for reserves. D) an upward movement along the supply curve for reserves.
A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level B) real GDP; investment C) real GDP; the price level D) the price level; investment E) investment; the price level
If the prices of both goods and income increase by the same percentage, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price. B) The budget line rotates outward from the intercept on the axis of the good that did not change in price. C) The budget line shifts outward without a change in slope. D) Nothing.
Which of the following best illustrates the use of discretionary countercyclical fiscal policy?
a. Congress provides $90 billion in relief aid for hurricane victims. b. Congress appropriates $50 billion to help the needy, and the appropriation is financed by a tax on wealth. c. Income tax receipts are smaller because of a decline in real GDP during a recession. d. Congress passes a bill authorizing $100 billion in additional spending when it receives news of a deepening recession.