Which of the following is true of the total revenue curve of a firm in a perfectly competitive market?
a. The total revenue curve is independent of the market price
b. As market price increases, the slope of the total revenue curve becomes flatter.
c. As market price increases, the slope of the total revenue curve becomes steeper.
d. As market price increases, the slope of the total revenue curve approaches zero.
c
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Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $4 and corn feed is on the horizontal axis, and the price of soybean feed is $5 and soybean feed lies on the vertical axis, what is expansion path?
a. C =5S/2 b. S =2C/5 c. the horizontal axis d. the vertical axis
Since monopolists that practice price discrimination generally increase market output, compared to a monopoly that charges a single price, practicing price discrimination generally leads to a smaller deadweight loss
a. True b. False Indicate whether the statement is true or false
How many cars will this country import in an open economy situation?
A. 60,000 B. 20,000 C. 80,000 D. 40,000
If the marginal propensity to consume (MPC) is 0.8, the spending multiplier will be
A. 0.2. B. 8. C. 5.0. D. 4.0.