If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is:
A. $465.
B. $448.
C. $17.
D. $1.
Answer: C
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Julia knows that the price elasticity of movie rentals is 3. She knows, therefore, that if she raises her price from $2 to $2.50, her rentals will drop by approximately
A. 150 percent. B. 100 percent. C. 75 percent. D. 33 percent.
An investment tax credit, which would lower taxes for firms that invested in new capital equipment, would shift the long-run aggregate supply curve to the right over time
a. True b. False Indicate whether the statement is true or false
The infant industry argument
a. is that governments should protect all industries for the first five years of existence b. is that governments should protect a new industry until it can "stand on its own feet" c. defends quotas on products produced by infant industries abroad d. has been used to justify protection of strategically important industries e. explains why some less developed countries export raw materials
An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. decrease public saving. B. increase private saving. C. increase public saving. D. reduce investment in new capital equipment.