What is the shape of the marginal revenue curve derived from a linear downward sloping demand curve?
A) Horizontal
B) Vertical
C) U-shaped
D) Downward sloping, with a constant slope
D
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Patents, which confer market power, are intended to:
A. encourage innovation by helping firms recoup the costs of research and development. B. maintain the dominance of U.S. firms. C. enable patent holders to charge lower prices for new and innovative products. D. protect consumers from imitations, or knock-offs.
The time-inconsistency problem involves the ________
A) difficulties of traveling across time zones B) tendency to deviate from good long-run plans in the short-run C) use of adaptive expectations in building an economic model D) time lag between the implementation of policy and its ultimate and complete results
In order to avoid problems involved with calculating percentage changes over a wide range, economists use the base or midpoint formula to calculate percentage changes when measuring the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
According to the graph shown, producer surplus is:
A. the area under the demand curve and above the market price. B. the area above the supply curve and below the price. C. the area above the demand curve and below the price. D. the area under the supply curve and above the price.