If a firm in a perfectly competitive market faces a market price of $8, and it decides to increase its production from 300 units to 550 units, the firm's total revenue will:
A. stay the same at $8.
B. decrease from $4,400 to $2,400.
C. increase from $2,400 to $4,400.
D. likely rise, but it cannot be determined by how much.
Answer: C
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If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the consumer surplus will be
A) $0. B) $8 million. C) $16 million. D) $32 million.
Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in interest rates B) an increase in the money supply C) a decrease in income taxes D) a decrease in government purchases
How does the study of microeconomics differ from that of macroeconomics? Give one example each of an issue studied in microeconomics and in macroeconomics
What will be an ideal response?
An example of frictional unemployment is a(n):
A. textile worker permanently laid off due to jobs lost to imports. B. engineer permanently laid off due to advances in technology. C. fast-food restaurant worker who quits work and attends college. D. computer programmer who leaves one job and accepts a new job.