A natural gas monopoly currently sells 100 cubic feet of gas at $1.10 per cubic foot. To sell one more cubic foot, the natural gas company must lower the price of gas to $1.09 . Which of the following best describes the marginal revenue of the 101st cubic foot of natural gas?
a. The marginal revenue equals the price, or $1.09
b. The marginal revenue equals the change in price, or $ 0.01.
c. The marginal revenue is less than $1.09.
d. The marginal revenue is greater than $1.09.
c
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The production possibilities curve represents the set of all
A) nonlinear forms of production in the economy. B) combinations of goods and services that can be used in the production of other goods and services. C) factors of production that can be used to manufacture goods and services. D) feasible combinations of goods that the economy can produce given that a nation's resources are fully employed.
Autonomous expenditure times the multiplier equals
A) autonomous consumption. B) equilibrium GDP. C) autonomous saving. D) planned autonomous investment.
According to the law of demand, if
a. price increases, quantity demanded decreases b. people's income increases, quantity demanded increases c. price increases, quantity demanded increases d. people's income increases, quantity demanded decreases e. demand increases, supply will increase
When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods
a. True b. False Indicate whether the statement is true or false