This table represents the revenues faced by a monopolist.PriceQuantity SoldTotal RevenueAverage RevenueMarginal Revenue$1,0001$1,000 $9002$1,800 $8003$2,400 $7004$2,800 $6005$3,000 $5006$3,000 $4007$2,800 Using the information in the table shown, the marginal revenue for the 3rd unit is:
A. $800
B. $600
C. $100
D. $500
Answer: B
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A dominant strategy exists if:
A. both players make the same choice. B. one strategy yields the highest possible payoff. C. both players have the highest payoff when they make the same choice. D. a player has a strategy that yields the highest payoff regardless of the other player's choice.
The ABC Company manufactures routers that are used to provide high-speed Internet service. ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month
Therefore A) ABC will soon go out of business. B) to reach minimum efficient scale ABC would have to sell at least 3,000 routers each month. C) ABC is experiencing diminishing returns. D) ABC is experiencing diseconomies of scale.
A long put position
A) has a value of zero if the stock price is below the exercise price. B) has a value equal to the stock price minus the exercise price if the stock price is above the exercise price. C) has a value of zero if the stock price at the time of purchase exceeds the expected stock price at option expiration. D) has a value equal to the exercise price minus the stock price if the stock price is below the exercise price.
All of the following are likely results of a negative demand shock EXCEPT
A) a negative output gap. B) lower inflation. C) IS shifts to the left. D) Phillips curve shifts to the left.