Critics of the huge net returns on, for example, oil production will claim that the returns are
a. interest on the capital investment.
b. rents on a natural resource.
c. profits on entrepreneurial activity.
d. exorbitant and should be taxed away.
b
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In perfect competition, the marginal revenue of an individual firm
A) is zero. B) is positive but less than the price of the product. C) equals the price of the product. D) exceeds the price of the product.
A monopolist that charges different prices to different buyers based on their elasticizes of demand is practicing
a. first degree price discrimination. b. second degree price discrimination. c. third degree price discrimination. d. predatory pricing.
In order to maximize utility, consumers _____
a. continue to make purchases until the marginal utility of each good is zero b. compare the marginal utilities of the last dollar spent on each good c. equate the total utilities of each good consumed d. continue to purchase a good until total utility is equal to zero e. will continue purchasing till diminishing marginal utility is not achieved
As the level of real interest rates rise, the amount of new investment will rise also
a. True b. False Indicate whether the statement is true or false