All Else Equal,if There Are Diminishing Returns,then If a Country

question 10

Multiple Choice

All else equal,if there are diminishing returns,then if a country raised its capital by 100 units last year and by 100 units this year,

• A)the increase in output was greater for this year than last year.
• B)the increase in output was greater last year than this year.
• C)the increase in output is the same in both years.
• D)None of the above is necessarily correct.

Recognize the relationship between demand elasticity, marginal revenue, and monopoly pricing strategies.

Calculate profit-maximizing output and price in multiplant monopoly settings.

Assess the impact of government intervention, through taxes, on prices and output in monopoly markets.

Understand the concept of the Lerner index and its application in measuring monopoly power.

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Definitions:

Last Dividend

The most recent distribution of company earnings to shareholders, expressed as a dollar per share value.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that has priority over common stock dividends but typically does not have voting rights.

Par Value

The nominal or face value of a bond, share, or coupon as stated by the issuer.

Market Price

The up-to-the-minute market price for assets or services open for buy or sell transactions.