When a simple monopolist chooses to sell an additional unit of a good or service
a. marginal revenue will be equal to the going market price.
b. marginal revenue will always be negative.
c. it will only have to lower its price on the additional unit.
d. it will have to lower its price on the additional unit and on all other units.
d. it will have to lower its price on the additional unit and on all other units.
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In the above figure, the slope at point b is
A) 1. B) 5/2. C) between 1 and 5/2. D) greater than 5/2.
Diminishing marginal utility means that
A) Ralph will enjoy his second hamburger less than the first. B) the total utility from one hamburger exceeds the total utility from two hamburgers. C) the price of two hamburgers is twice the price of one. D) beyond a certain point, total utility decreases as income rises.
If a monopolist's price is $50 at the output where marginal revenue equals marginal cost and average total cost is $43, then the average profit is $7
Indicate whether the statement is true or false
The way in which a country benefits from trade is that it can
a. obtain goods at lower opportunity cost than producing them itself. b. exploit economies of scale in production and lower the cost of goods it produces. c. obtain a wider range of goods than it can produce for itself. d. All of the above are benefits.