Marginal revenue is:
a. the additional cost incurred from producing one more unit of output.
b. the addition to total profit from selling one more unit of output
c. the addition to total revenue from selling one more unit of output.
d. the addition to total output from hiring one more unit of labor.
c
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Predatory pricing occurs when a firm sells
A) above cost to any customers who have no good alternative. B) above cost to low-income customers who have no good alternative. C) at whatever prices the market will bear. D) below cost in order to eliminate competitors. E) only to customers who agree to rebate a portion of the price.
Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually
A) beat the market in the next time period. B) beat the market in the next two subsequent time periods. C) beat the market in the next three subsequent time periods. D) do not beat the market in the next time period.
A Lorenz curve measures the ________ on the horizontal axis
A) cumulative percentage of family income B) cumulative percentage of family wealth C) cumulative percentage of families D) demand of families on welfare
Because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly spawned grounds. At first, owners of fishing boats complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. With the restriction, each fishing boat ends up catching more fish than it did before the restriction was in place. Which of the following principles of economic interaction best describes this scenario?
A) Markets usually lead to efficiency.
B)There is a trade-off between equity and efficiency.
C) When markets do not achieve efficiency, government intervention can improve welfare.
D) Markets move toward equilibrium.