What is the difference between average, total, and marginal revenue? What is the shape of the total and marginal revenue curves for the individual competitive firm?
What will be an ideal response?
Average revenue is the amount of money the firm receives per unit of sale. Total revenue is the market price times the quantity that the firm can sell. Marginal revenue is the change in total revenue from selling one more unit of output. The marginal revenue curve for the individual competitive firm is a horizontal straight line because there is a constant change in total revenue from selling one more unit of output. The total revenue curve is an up sloping straight line. Market price is constant and multiplied by an increasing amount of quantity sold.
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Which of the following people is least likely to clip store coupons?
a. a retired person b. an unemployed person c. a low-income worker d. a high-priced consultant e. a graduate student on summer break
Why is it assumed that loans made in the form of check able deposits will cause money to flow into other banks?
What will be an ideal response?
The crowding-out effect of higher interest rates can be avoided by
a. expansionary monetary policy. b. expansionary fiscal policy. c. contractionary monetary policy. d. decreasing taxes.
You consider yourself to be a rational consumer. The marginal utility/price ratio of coffee is 12 utils per dollar. If the price of a donut is $0.75, you should only buy the donut if it gives you at least
A) 16 utils of satisfaction. B) 9 utils of satisfaction. C) 12 utils of satisfaction. D) The answer cannot be determined with this information.