In a graph that illustrates a perfectly competitive firm, marginal revenue is
A) a diagonal line that lies below the firm's demand curve.
B) a line that intersects the firm's demand curve from below at its lowest point.
C) the same as the firm's demand curve.
D) a line that intersects the firm's average total cost curve from below at its lowest point.
C
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Suppose the demand for wine is elastic and that initially 5 million bottles of wine are produced and consumed in the United States. If the government imposes a tax of $2 per bottle of wine, the government will collect
A) more than $10 million in tax revenues. B) $10 million in tax revenues. C) less than $10 million in tax revenues. D) an amount that may be more than, equal to, or less than $10 million in tax revenues depending on the precise elasticity of demand.
For an imaginary closed economy, T = $5,000; S = $11,000; C = $48,000; and the government is running a budget surplus of $1,000 . Then
a. private saving = $10,000 and GDP = $55,000. b. private saving = $10,000 and GDP = $63,000. c. private saving = $12,000 and GDP = $67,000. d. private saving = $12,000 and GDP = $69,000.
Which of the following is the formula for average revenue?
a. AR = TR - q b. AR = TR ÷ q c. AR = TR + q d. AR = TR × q
When compared to a competitive market, monopolists tend to charge a higher price and produce a greater level of output.
Answer the following statement true (T) or false (F)