The perfectly competitive firm's demand curve has
A) a negative slope.
B) a positive slope.
C) an undefined slope.
D) a slope of 0.
D
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Whenever you discount a future sum of money into its present value, you must know I. the interest rate. II. the number of years in the future in which the money will be received
A) only I B) only II C) both I and II D) neither I nor II
If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then
A) the government could set price equal to marginal cost and subsidize the monopoly. B) the government should not offer a subsidy, since the monopoly can make a profit setting price equal to marginal costs. C) if the government sets price equal to average cost, the monopoly will go out of business. D) the government cannot regulate price.
Which of the following is true about marginal utility?
a. Marginal utility is total utility divided by the total quantity consumed. b. Marginal utility is the change in total utility divided by the change in total quantity demanded. c. Marginal utility is the satisfaction that a consumer experiences from all the units of a good or service consumed. d. None of the above are true.
Which of the following is a possible reason for a comparatively steeper demand curve for health care? a. A large increase in the price of health care leads to a more than proportionate fall in the quantity demanded for health care. b. The demand curve for health care is comparatively steeper than other products, because health care is a Giffen good. c. A change in the price of health care
leads to no change in the profit earned by the suppliers. d. A large increase in the income of households leads to a less than proportionate increase in the quantity demanded. e. A large increase in price does not cause a reduction in the purchase of health care by the same proportion.