The change in total revenue that results from a one-unit change in the amount of a variable resource used is
a. average resource cost
b. marginal resource cost
c. marginal product
d. marginal revenue product
e. average revenue product
D
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Netflix introduced DVD rentals via US Mail whereby customers do not have to leave their home to rent movies. They also introduced the concept of no-late fees. Netflix has enjoyed strong profits over the last few years
However, what does economic theory tell us should happen to these profits in the long run and why?
For a monopoly, marginal revenue for all units greater than 1 is always:
A. less than price because of the price effect. B. more than price because of the price effect. C. more than price because of the quantity effect. D. less than price because of the quantity effect.
Nominal values are measured in
a. constant prices. b. dollars. c. actual prices. d. highest prices.
One way to make consumers take a positive externality into account in their demand decision is to:
A. place a tax on the item. B. tax the producers of the item. C. subsidize the purchase of the item. D. None of these statements is true.