If one day a terrible disease were to wipe out over one-half of the orange trees in the United States, which of the following would likely result?
A. The demand curve for orange juice would shift to the right.
B. The supply curve of orange juice would shift upward and to the left.
C. The supply curve of orange juice would shift downward and to the right.
D. The demand curve for orange juice would shift to the left.
Answer: B
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In a graph that illustrates a perfectly competitive firm, marginal revenue is
A) a diagonal line that lies below the firm's demand curve. B) a line that intersects the firm's demand curve from below at its lowest point. C) the same as the firm's demand curve. D) a line that intersects the firm's average total cost curve from below at its lowest point.
You work as a marketing analyst for a pharmaceutical firm, and you are trying to gather information about the marginal cost of production for a competing firm
You know that they have a patent on a popular medication that sells for $20 per dose, and you believe the elasticity of demand for this product is roughly -4. Assuming the competing firm acts as a profit-maximizing monopolist, what is the competing firm's approximate marginal cost of production? A) $10 per dose B) $12.50 per dose C) $15 per dose D) $20 per dose