Assuming demand is linear, the shape of a monopolist's total revenue schedule is a
A. straight line with negative slope.
B. curve from the origin with increasing slope.
C. straight line passing through the origin.
D. curve from the origin with decreasing slope.
Answer: D
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Which of the following is true about a hierarchy?
a. It primarily acts as a residual claimant. b. It is a group of individuals who make decisions. c. It is an alternative to independent specialization of individual workers. d. It is a group of individuals who hold shares of the company and are entitled to dividends.
Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
a. high prices b. low price elasticity of demand c. high compatibility of member interests d. significant barriers to entry e. unequal member ownership of the natural resources
Refer to the above graph. Which factor will shift AS1 to AS2?
A. A decline in consumer confidence. B. A rise in national income abroad. C. An increase in government spending. D. A reduction in business taxes.
In short-run equilibrium, a perfectly competitive firm can never earn an economic profit.
Indicate whether the statement is true or false