The basic rule for maximizing net revenue is: Charge a price, or set of prices, so that
A) expected marginal revenue equals expected marginal cost.
B) expected marginal revenue exceeds expected marginal cost.
C) expected marginal revenue is equal to or less than expected marginal cost.
D) marginal revenue turns out in practice to be equal to or less than marginal cost.
E) marginal revenue turns out in practice to be greater than marginal cost.
B
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Money exchanges are more efficient than barter because:
a. money exchanges do not require a double coincidence of wants. b. the government guarantees the value of money. c. money usually has an intrinsic value. d. money is backed by a physical commodity. e. opportunity costs are higher with barter trades.
Which of the following statements best describes the Bank of Canada? It is:
A.a publicly owned and publicly controlled central bank, whose basic goal is to provide income for the Government of Canada B. a privately owned and publicly controlled central bank, whose basic goal is to earn profits for its owners C. a publicly owned and publicly controlled central bank, whose basic goal is to control the money supply and interest rates and maintain price stability and it is an independent agency of government. D. a privately owned and publicly controlled central bank, whose basic function is to minimize the risks in chartered banking in order to make it a reasonably profitable industry E. a privately owned and privately controlled bank, whose basic goal is to earn profits for its owners
Refer to Table 8.2. If Sherry produces four pairs of earrings, her average fixed costs are A) $4. B) $20. C) $25. D) $100.
When the price elasticity of demand of a service is _____, a small increase in price will lead to a decline of the same percentage in quantity.
A. 10 B. 1.0 C. 0.0 D. 0.1