If the demand curve a firm faces shifts to the right, usually
a. it would be impossible to tell whether the marginal revenue curve shifts.
b. the marginal revenue curve would shift to the left.
c. the marginal revenue curve would shift to the right.
d. the marginal revenue curve would not shift.
c
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Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then __________________ has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.
A. no market failure; market failure has occurred. B. market failure; no market failure has occurred. C. no market failure; there will still be no market failure. D. market failure; there will still be market failure.
In a long-run equilibrium, a perfectly competitive firm's average total cost is
A) minimized. B) maximized. C) zero. D) equal to average fixed cost.
If you buy a commemorative Princess Diana stamp issued by the British government, the purchase is considered part of:
a. C. b. I. c. G. d. X. e. M.
Give an example that demonstrates a change of price elasticity along a linear demand curve. Avoid using examples given in the text.
What will be an ideal response?