A monopolist finds out that if he lowers his price from $10 to $8, sales rise from 100 units to 115 units. Therefore, in this price range,
a. marginal revenue is positive.
b. marginal revenue is negative.
c. the price elasticity of demand is greater than one.
d. both a and c are correct.
A
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The table above provides information about the marginal private benefit for education
The marginal private cost, which also equals the marginal social cost, of educating a student is $16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to $12,000 per student year and does not change as more students are educated. What is the efficient amount of education? A) 40,000 student-years B) 60,000 student-years C) 80,000 student-years D) 100,000 student-years
According to the infant industry argument, a new domestic industry needs protection because it has higher costs than established foreign competitors
a. True b. False Indicate whether the statement is true or false