Assume That Automobiles Are a Normal Good

question 137

Multiple Choice

Assume that automobiles are a normal good. An increase in income will

• A) shift the marginal revenue product curve of auto workers to the left.
• B) move a firm down the marginal revenue product curve of auto workers.
• C) shift the marginal revenue product curve of auto workers to the right.
• D) have no effect on the marginal revenue product curve of auto workers.

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at different prices.

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, regardless of the market segment or consumer willingness to pay.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.