Price-taking producers have horizontal marginal revenue curves.
Answer the following statement true (T) or false (F)
True
Rationale: A price taking producer can always sell additional output at the same price as previous output -- and thus faces a constant marginal revenue for all output.
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When the production possibilities frontier bows outward from the origin
A) some of society's resources are unemployed. B) opportunity costs are constant. C) opportunity costs are increasing. D) opportunity costs are decreasing.
A restaurant sells a large soft drink at a fixed price of $1.79. A term used by economists to describe the money received from the sale of an additional large soft drink is
A) pure profit. B) marginal revenue. C) gross earnings. D) net benefit.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit?
A. $10,000 B. $5,000 C. $20,000 D. $15,000
The largest concentration of people in the world (the most people) now is in what region?
a. Africa b. South America c. Asia d. Europe