What is the relationship between marginal revenue and average revenue for a monopolist and is it the same for a perfect competitor?
What will be an ideal response?
Average revenue is equal to price for any firm but for a monopolist, marginal revenue is always less than price and therefore marginal revenue is less than average revenue. For a perfect competitor, marginal revenue is equal to price.
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Developing countries are usually unwilling to negotiate over labor standards because
A) the WTO always tends to rule in favor of industrialized nations. B) they fear that industrialized nations are trying to undermine their comparative advantage—production of agriculture and textiles/apparel—and close the markets of high-income countries in these areas. C) they fear that they may be unable to compete without some protection of their industries. D) they don't have a comparative advantage in any good at all. E) organized labor would not allow them to negotiate with other countries.
A higher price for a good will cause the budget constraint to rotate toward the origin
a. True b. False Indicate whether the statement is true or false