Figure 17.1 depicts a firm's marginal revenue product curve. If the product price decreases, the marginal revenue product curve:
A. shifts downward.
B. shifts upward.
C. remains the same.
D. None of these
Answer: A
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Perfect competition is defined as market structure in which:
a. it is very easy for firms to enter or exit the market. b. the product is homogeneous. c. All of the answers are correct. d. there are many small sellers.
An important antitrust concern about new companies such as Google and Facebook is that they:
A. do not have incentives to innovate. B. use data on their customers to direct ads. C. charge monopoly prices for their services. D. benefit from first-mover advantage.
Agri-Tech supplies a patented sweetener to various food processors. It has noticed that the value of the sweetener varies dramatically from one buyer to another, depending on the end-use demand. But its experiments with charging higher prices to some buyers have failed because:
A. outsourcing is compromised by contracting costs. B. of market arbitrage. C. the cost of production is always the same. D. price discrimination is illegal.