For a price-taking firm, marginal revenue
A. is the addition to total revenue from producing one more unit of output.
B. decreases as the firm produces more output.
C. is equal to price at any level of output.
D. both a and b
E. both a and c
Answer: E
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A perfectly price discriminating monopolist charges each buyer:
A. more than his or her reservation price. B. exactly his or her marginal cost. C. the perfectly competitive equilibrium price. D. exactly his or her reservation price.
Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?
A. Increase the number of lumberjacks with chain saws and observe the change in output of cut trees B. Increase the number of workers on an assembly line and record the change in output C. Increase the number of data entry operators and computers and calculate the extra output. D. Check the number of workers before and after a given time period.
Other things constant, if a person prefers to have a good sooner rather than later
A) she is acting like a child. B) she has a negative rate of time preference. C) she has a zero rate of time preference. D) she has a positive rate of time preference.
There is widespread ____ about the causes of poverty and widespread _____ about how to alleviate poverty.
A. agreement; agreement. B. disagreement; disagreement. C. agreement; disagreement D. disagreement; agreement.