Jim's Shoe Shine Shop operates in a perfectly competitive market. If its marginal revenue is $5 per shine, then
a. the next shine will bring in less than $5 in additional revenue
b. the next shine will bring in more than $5 in additional revenue
c. the market price per shine is $5
d. price is less than $5
e. price is equal to total revenue at all output levels
C
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A tax imposed by a state or local government on retail sales of most products is
A) an excise tax. B) a sales tax. C) a consumption tax. D) a social service tax.
Assume that an industry requires a very specialized technology that involves high start-up costs for new firms no matter what level of output they produce. In the long run, at low levels of output, these firms will tend to exhibit
a. diminishing marginal returns b. increasing marginal returns c. diseconomies of scale d. constant returns to scale e. economies of scale
Figure 7-11
Refer to . As price falls from PA to PB, we could use the three demand curves to calculate three different values of the price elasticity of demand. Which of the three demand curves would produce the smallest elasticity?
a.
D1
b.
D2
c.
D3
d.
All of the above are equally elastic.
Kenya owns a lawn mowing company. His total product schedule is in the above table. The marginal product of the fourth worker is ________ lawns mowed per week
A) 80 B) 25 C) 20 D) 5 E) 320