Comment on the following statement: "For a monopolist, marginal revenue is always equal to price."
What will be an ideal response?
The statement is false. Marginal revenue is less than price for a monopolist (at every level of output except for the first unit). This is due to the fact that the demand curve facing a monopolist is downward sloping. When a monopolist increases output by one unit, he must lower the price on all units sold. This means that the increase in revenue will be less than the price of the good.
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Investment is
A) spending by businesses on things which can be used to produce goods and services in the future. B) the production of goods for immediate satisfaction. C) the purchasing of stocks and mutual funds. D) goods bought by households.
When the good on the vertical axis is a composite good, the slope of the budget line is equal to minus the price of the good on the horizontal axis.
Answer the following statement true (T) or false (F)
Using the data in the above table, the unemployment rate is
A) 4.0 percent. B) 4.16 percent. C) 5.55 percent. D) 28.0 percent.
Use Figure 13.2 which depicts a monopolist firm to help with the following question. Define the area of total costs that this firm will incur if it is maximizing profit. Use the letters that appear on the graph to identify the area
What will be an ideal response?