For a monopolist, the marginal revenue gained when one more unit of output is sold is
A) the price at which the extra unit is sold minus the loss in revenue that results from cutting the price on units sold previously.
B) equal to the price of the product.
C) negative if price is above the midpoint of the demand curve.
D) the average revenue created by the increased sales.
Answer: A
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Keynes argued that
I. Capitalism did not always lead to full employment. II. Nominal prices were more important than relative prices. A) I only B) II only C) Both I and II D) Neither I nor II
In 1911, the Supreme Court established the rule of reason. This rule held that
a. the Sherman Antitrust Act made only unreasonable restraints of trade illegal. b. the Court was entering a new deductive stage of reasoning. c. the Sherman Antitrust Act made the mere size of a firm an offense. d. All of these.
Merely demonstrating that wages are lower for blacks and females does not in itself prove wage discrimination
a. True b. False Indicate whether the statement is true or false
Table 13-20 Listed in the table are the long-run total costs for three different firms.
Firm B is experiencing constant returns to scale.
a. True
b. False