Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that his total revenues change according to the number of workers he hires, as shown in the table below.WorkersTotal Revenue1$1,00021,40032,00041,6005800What is the marginal revenue product of the third worker?
A. $667
B. $6,000
C. $400
D. $600
Answer: D
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Use the following graph to answer the next question.
If the government regulated the pure monopoly and made it set a normal profit price, what price and quantity of output levels would we observe in the short run?
A. P1 and Q1 B. P2 and Q3 C. P3 and Q2 D. P4 and Q1
A demand curve is a graphical representation of
A) consumer tastes. B) national income. C) the demand schedule. D) relative prices.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
Answer the following questions true (T) or false (F)
1. If the market price is at equilibrium, the deadweight loss is zero. 2. Deadweight loss refers to a loss in revenue resulting from producers having to reduce their selling price to remain competitive. 3. Equilibrium in a competitive market results in the greatest amount of economic surplus from the production of a good or service.