Suppose that there is only one seller in the computer industry. If the demand curve that the only seller in the industry faces is a straight-line, downward-sloping curve, at which point would the seller's total revenue be maximized?
A. at the highest point on the demand curve, where price is the highest
B. at a point high on the demand curve, where elasticity is elastic
C. at the midpoint of the demand curve, where elasticity is unitary
D. at a point low on the demand curve, but not at the very bottom
Answer: C
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Jim' burger produces 500 burgers per week. Each burger is priced at $3 . What is the marginal revenue of selling the 50th burger?
a. $3 b. $150 c. $147 d. It cannot be determined with the information given
Dollarization is associated with each of the following, except:
A. adopting the monetary policy of the country whose currency is being used. B. the central bank no longer has the ability to be the lender of last resort. C. slower integration into world markets. D. the loss of revenue from printing currency.
When the selling price of a good rises (goes up), what is the relationship to the quantity supplied?
a. The profit made on each item goes down. b. It becomes practical to produce more goods. c. The cost of production goes down. d. There is no relationship between the two.
Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
A. constant. B. falling. C. rising. D. subject to diminishing returns.