Refer to the figure above. What is the market-wide consumer surplus when the market price of calculators is $6?
A) $20
B) $35
C) $50
D) $70
C
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The key idea behind price discrimination is to convert consumer surplus into
A) a barrier to entry. B) economic profit. C) deadweight loss. D) monopoly power. E) total cost.
If the inverse demand function for a monopoly's product is p = a - bQ, then the firm's marginal revenue function is
A) a. B) a - (1/2)bQ. C) a - bQ. D) a - 2bQ.
Which of the following is NOT true of a demand curve?
A. It reflects sellers' reservations prices. B. It relates the price of an item to the quantity demanded of that item. C. It has negative slope. D. It shows the amount consumers want to buy at various prices.
If we assume that labor is the only variable input, the slope of the total product curve in the short run
A. measures the average product of labor. B. has no economic significance. C. measures the marginal product of labor. D. measures both the marginal and average product at all points on the total product curve.