The more successful a seller is in inducing buyers to pay the maximum price they would be willing to pay rather than do without the good, the
A) closer will the seller's marginal revenue curve come to the demand curve.
B) greater will be the demand for the good.
C) more elastic will be the demand for the good.
D) more inelastic will be the demand for the good.
A
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Patents stimulate technological advance by
A) allowing inventors to capture the economic rewards of their inventions. B) making capital more productive. C) providing information about the status of technical knowledge in the economy. D) enabling the government to determine which potential technological advances firms should pursue.
One characteristic of monopolistic competition is that it has
A) many firms producing a slightly differentiated product. B) many firms producing identical goods. C) one firm producing a unique good. D) a few firms producing a slightly differentiated product. E) large barriers to entry.
Which of the following would increase the value of the dollar in the long run?
A) a decrease in U.S. tariffs on foreign goods B) an increase in the demand for American goods relative to goods from other countries C) an increase in inflation in the United States relative to other countries D) an increase in the supply of dollars on the foreign exchange market
Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $80, $30, $0, and -$80 respectively. The expected value is:
a. $22 b. $24 c. $26 d. $28