In the above figure, what is the quantity of workers that would be hired by a monopsonist?
A. Q1
B. Q2
C. Q3
D. Q4
Answer: B
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Why is the demand for foreign currencies known as a derived demand?
Central planning is an ineffective method to organize an economy because
A) central planners do not respond predictably to incentives. B) central planners cannot possibly obtain all the information necessary to allocate resources efficiently. C) most central planners are less intelligent than business entrepreneurs in market economies. D) central planners have inadequate funding to meet the needs of their constituents.
Briefly explain how the tax system can stabilize the economy.
What will be an ideal response?
The data below relate to a pure monopolist and the product it produces. If the firm currently sells 2 units of output at a price of $18, in order to maximize profit the firm should:PriceQuantityTotal Cost$220$20201241822716333144401254910659
A. lower its price to $14. B. lower its price to $16. C. raise its price to $20. D. leave its price and output unchanged.