Which of the following is true about a Sweezy oligopoly?
A. The marginal revenue function has an upward "jump" or "discontinuity."
B. The marginal cost function has an upward "jump" or "discontinuity."
C. The marginal revenue function has a downward "jump" or "discontinuity."
D. The marginal cost function has a downward "jump" or "discontinuity."
Answer: C
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An optimizing consumer makes her purchase decisions based on:
A) the total benefits at various levels of consumption. B) benefits per dollar spent at the margin. C) the total benefits per dollar spent at various levels of consumption. D) the benefits from the first dollar spent on consumption.
Tolls for government turnpikes have features of a tax based on _____
a. the benefit principle b. the ability-to-pay principle c. the Ramsey rule d. redistribution