Answer the following statements true (T) or false (F)
1. A firm sells 99 units of output when price equals $10, and 100 units of output when price equals $9. Its marginal revenue for the 100th unit of output is negative.
2. The monopolist's demand curve is more elastic than the industry demand curve.
3. At the inelastic portion of a monopolist's demand curve, the marginal revenue of each extra unit of output is positive.
4. As a monopolist lowers the price of its product from a high level, it finds that its total revenue may at first increase and then, below a certain price, its total revenue begins to decrease.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
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If a country is a price taker for a good in the world market, ________
A) its consumption and production decisions of the good play a key role in determining world prices B) its consumption and production decisions of the good do not affect world prices C) its demand for the good remains the same irrespective of changes in world prices D) it is the only exporter of the good in the world market
Which of the following increases the supply of a product?
A) a fall in the price of the product B) a smaller number of sellers producing the product C) an increase in foreign imports of the product D) higher taxes imposed upon producers of the product
For many years, dairy farmers would milk their cows and bring the milk to market. After buyers and sellers negotiated all sales, the farmers dumped large quantities of milk into rivers. What does it tell us about that milk market? A free market would not have created an ______, so that in this case there must have been a _________
a. opportunity to dump milk; special permit b. excess supply; price floor c. excess demand; price floor d. excess supply; price ceiling e. excess demand; price ceiling
The environmental problems of China:
a. were caused by a lack of central planning in the economy. b. were caused by the burning of low-quality, high-sulfur coal. c. were caused by a lack of pollution controls. d. All of the above are correct.