Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist. QuantityPrice1$102$93$84$75$66$57$48$3The marginal revenue of the third unit of output is:
A. $6.
B. ?$1.
C. $24.
D. $8.
Answer: A
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Assume the price elasticity of demand for a product is -4. In this case, the firm's optimal markup is (approximately):
A) 400 percent. B) 100 percent. C) 33 percent. D) 25 percent.
Based on the graph showing U.S. health care expenditures as a percentage of GDP, during which period did health care expenditures remain fairly steady?
a. 2000 to 2006
b. 2006 to 2009
c. 2009 to 2013
d. 2013 to 2016
Refer to the following table. If Jane's hourly wage rose from $2 per hour to $4 an hour and Jane had 6 hours to work or play, Jane would:SpendingTotal Utility of spending($)Hours of leisureTotal utility of leisure$260130$4110254$6148370$8172478$10180578$12186670
A. work 4 hours and play 2 hours when her wage is $2/hour but then work 3 hours and play 3 hours when her wage is $4 an hour. B. not work at $2 an hour and not play at $6 an hour. C. not play at either wage. D. work 4 hours and play 2 hours when her wage is $2/hour but then work 6 hours when her wage is $4 an hour.
Which is likely to be larger, the velocity of M1 or M2?
A. M1, because M2 is a larger number. B. M2, because M1 is a larger number. C. The velocities of both are approximately equal. D. The numbers of velocity switch in relative size.