Case Study: Starting a Business — Unit test Answers

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Which best describes the availability of substitutes in a monopoly?

Price points vary.

There are no substitutes.

There are different brands.

Products have different features.

What is the difference between marginal cost and marginal revenue?

Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.

Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.

Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.

Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.

The amount that a good is sold for is its

elasticity.

price.

profit.

supply.

The graph shows a point of equilibrium.What does "P" represent on the graph?

the point where equilibrium is achieved

the price at the equilibrium point

the average price of goods sold

the point where supply and demand drop

Goods that are considered to be needs tend to be

elastic when the price changes.

inelastic when the price changes.

elastic when the supply changes.

inelastic when the supply changes.

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