For a monopolist, the reason that marginal revenue is less than price is
A) because of the perfectly elastic demand curve that the monopolist faces.
B) because the monopolist must lower the price of the good in order to sell an additional unit.
C) because of the U-shaped average revenue curve.
D) because of the lack of competition in the market.
B
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The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $30, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
In the short-run, a firm's decision to shut-down should not include
a. Avoidable costs b. Variable costs c. Fixed costs d. Marginal costs
Net exports is calculated by:
A. adding total exports and total imports together. B. subtracting total exports from total imports. C. subtracting total imports from total exports. D. None of these is correct.
If the price elasticity of supply for wheat is less than 1, then the supply of wheat is
a. inelastic. b. elastic. c. unit elastic. d. quite sensitive to changes in income.