For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve.
B) is greater at higher prices than at lower prices.
C) increases each time prices are lowered.
D) falls each time prices are raised.
Answer: B
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The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue
From this we can conclude that the drivers believe that the demand for taxicab rides is A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same. b. Demand for real goods and services to fall and M2 money supply to fall. c. Demand for real goods and services to remain the same and M2 money multiplier to fall. d. Demand for real goods and services to remain the same and M2 money supply to remain the same.