How does total revenue change as one moves downward and to the right along a linear demand curve?
a. It always increases.
b. It always decreases.
c. It first increases, then decreases.
d. It is unaffected by a movement along the demand curve.
c
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Dalton, Georgia has developed into a leading producer of carpets, despite its small size. What is the reason for Dalton's comparative advantage in carpet production?
A) the development of superior process technology B) an abundant supply of unskilled labor C) Dalton is located near a railroad hub that it uses to transport carpet. D) external economies
An oil producer discovers an oil supply in Texas that can be pumped for a profit of $50 per barrel now, $60 per barrel in three years, $80 per barrel in five years, or $90 a barrel in seven years. The current market rate of interest is 3 percent. When should the oil producer extract the oil to obtain the most profit per barrel in present value terms?
A. Today B. Three years C. Five years D. Seven years