In a small town, Marilyn's Christmas Tree Lot has a monopoly on sales of Christmas trees. In order to increase her sales from 100 trees to 101 trees, she must drop the price of all of her trees from 20 to 19. What is the marginal revenue?
A) 2000
B) 20
C) 19
D) negative 81
Ques. 2A rise in the price of cabbage from 14 to 18 per bushel increases the quantity supplied from 4,000 to 6,000 bushels. The elasticity of supply is
A) 0.6.
B) 0.8.
C) 1.0.
D) 1.6.
Ques. 3The table gives the demand and supply schedules for boat rides. If the supply of boat rides increases by 20 rides a day, the price will ________.
A) remain unchanged
B) fall to 6 a ride
C) rise to 6 a ride
D) rise to 10 a ride
Ques. 4In the figure above, Nike maximizes its profit if it sells ________ pairs of shoes per day.
A) 120
B) 87
C) 137
D) 150
Ques. 5If enforcement is aimed at sellers of an illegal good, its equilibrium price will ________ and its equilibrium quantity will ________.
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease
Ques. 6Which of the following statements is FALSE?
A) A consumer has only one indifference curve.
B) A consumer possesses a preference map.
C) An indifference curve is a curve that shows the combination of goods among which a consumer is indifferent.
D) The marginal rate of substitution is the rate at which a consumer will give up good y to get more of good x and remain on the same indifference curve.
Ques. 7The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. Initially the market price of peanuts is 2.00 per pound.
If the market price of peanuts fall to 1 per pound and a worker costs 800 per month, how many workers will Peter employ to maximize his profit? A) zero
B) two
C) three
D) four
Ques. 8The demand for one money is the supply of another money.
Indicate whether the statement is true or false
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