For a pure monopolist the relationship between total revenue and marginal revenue is such that:
A. marginal revenue is positive when total revenue is at a maximum.
B. total revenue is positive when marginal revenue is increasing, but total revenue becomes
negative when marginal revenue is decreasing.
C. marginal revenue is positive when total revenue is increasing, but marginal revenue
becomes negative when total revenue is decreasing.
D. marginal revenue is positive so long as total revenue is positive.
Answer: C
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A). If there is a shortage of apples, how will the equilibrium point change?
A) There will be no change in the equilibrium point. B) The equilibrium point will move from A to B. C) The equilibrium point will move from A to C. D) The equilibrium point will move from A to E.
Refer to the above figure. If real disposable income is $30,000, saving is
A) $0. B) $4000. C) $5000. D) $6000.