Answer: b. Marginal revenue is less than average revenue
Explanation:
Marginal revenue is the extra revenue received by selling one more unit of a good while Average revenue is the revenue generated on average by all units sold thus far.
If the monopolist has to reduce prices to sell more goods then it would mean that for every unit sold, the price would have reduced compared to the price of the last unit which translates to less revenue coming in per unit compared to the last unit.
On the other hand, on average, the higher prices of the earlier goods sold would keep the average revenue higher than the additional revenue (marginal revenue).
Answer:
The correct answer is B. If there are 10 plants producing the total domestic consumption of a product and each plant is operating at minimum efficient scale, then each plant accounts for 10 percent of domestic consumption.
Explanation:
It is understood that the total consumption of a product is 100% of it. Therefore, as long as there are 10 plants that, producing at a minimum efficiency scale on an equal basis, cover this total consumption, the percentage of consumption that each plant produces will be 10%.
This is so because 100/10 = 10, provided that it is considered that the production is carried out equitably between each of the production plants.
The total cost of the ipad sold on ebay is $908.70
The statement that "<span>The prisoner's dilemma game illustrates rational decisions made by individuals which lead to a jointly efficient outcome" is false.
</span><span>The prisoner's dilemma is a standard example of a game analyzed in game theory
that shows why two completely "rational" individuals might not
cooperate, even if it appears that it is in their best interests to do
so.</span>
