A monopolist increases output from 4 to 5 units. His total revenue increases from $2,750 to $3,600 . Which of the following inferences is true?
a. The marginal revenue from the 4th unit is $850
b. The marginal revenue from the 5th unit is $850.
c. The total cost of producing the 5th unit is $850.
d. The profit earned from producing the 5th unit is $850.
b
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Group price discrimination has ________ consumer surplus than under ________
A) more; perfect competition B) less; perfect competition C) more; an elastic demand curve D) less; single-price monopoly
A patent is a property right, which gives the owner
A) the right to sell and/or license the invention. B) the ability to make the knowledge of how to make the invention rival. C) a guaranteed profit. D) All of the above.
Speculators make their profits on
a. price differences in different time periods. b. price increases from inflation. c. avoiding double taxation of income. d. the difference in interest rates on stocks and bonds.
The theory that government borrowing may function like an increase in taxes is known as
A. the Ricardian equivalence theorem. B. Congressional Tax policy. C. the marginal propensity to consume. D. planned tax policy.