If the market price is $25 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
A) $5.
B) $12.50.
C) $25.
D) $125.
Answer: C
You might also like to view...
Explain the differences between using the monetary base versus federal funds rate as the monetary policy instrument. Which does the Fed use as its instrument?
What will be an ideal response?
Which of the following would be evidence against rational expectations?
a. unpredictable changes in policy have real effects. b. new information leads to changes in output. c. the public never make mistakes with respect to price level predictions. d. changes in stock prices change much more often than new information becomes available.
Where is the monopoly supply curve located?
a. above the marginal revenue curve b. below the marginal revenue curve c. to the right of the marginal cost curve d. coincident with the marginal cost curve e. there is no monopoly supply curve
The theory of economic growth focuses on the
A. growth of real income equality in the long run; not on the growth of real income in the short run. B. growth of resources in the long run, not on the efficiency of resource use in the short run. C. growth of potential output over the long run, not on fluctuations in the level of economic activity in the short run. D. advancements in technology over the long run, not on short-run increases in real GDP.