A monopolist charges $7 per unit for selling 6 units of his product. To sell 7 units, he reduces price to $6.5 per unit. The marginal revenue (net addition to revenue) from selling the seventh unit is then $3.5
Indicate whether the statement is true or false
T
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Demand for science fiction novels is elastic and supply of science fiction novels is inelastic. When the government puts a $2.00 tax on science fiction novels,
a. buyers will pay most of the tax. b. sellers will pay most of the tax. c. buyers and sellers will split the tax evenly. d. elasticity has nothing to do with who pays the tax.
Games with a noncooperative equilibrium:
A. always result in a negative-negative outcome. B. can result in either a positive-positive or negative-negative outcome. C. always result in a positive-negative outcome (zero-sum). D. always result in a positive-positive outcome.
A theory of ________ that concludes that the social contract emerging from the original position would call for an income distribution that would maximize the well-being of the worst-off member of society is known as Rawlsian justice.
A. labor value B. legal equity C. utilitarian justice D. distributional justice
Net unilateral transfers would appear in a nation's
A) current account. B) capital account. C) official reserve transaction account. D) financial account.