Assume the marginal product for a particular good is constant. Describe the shape of the total product function that would accompany it.
What will be an ideal response?
Ques. 2How does marginal revenue compare to price for a single-price monopoly?
What will be an ideal response?
Ques. 3What is a price ceiling?
What will be an ideal response?
Ques. 4The government can aid in reducing pollution by using a policy of cap-and-trade, which means that polluters are taxed on the amount of pollution they discharge.
Indicate whether the statement is true or false
Ques. 5Explain how it is possible for marginal product to fall while average product is rising?
What will be an ideal response?
Ques. 6In the short run, when production goes up what typically happens to total variable costs?
What will be an ideal response?
Ques. 7What is the relationship between the marginal revenue curve and the demand curve for a single-price monopolist?
What will be an ideal response?
Ques. 8When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved.
Indicate whether the statement is true or false
Ques. 9Explain what a black market is and how it functions. What is a black market generally a response to?
What will be an ideal response?
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