A monopolist can sell 3 units of its good at a price of $50 . If the average total cost of producing 3 units is $24, the profit earned by the monopolist would be:
a. $126.
b. $72
c. $78.
d. $81.
c
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The kind of assets banks can hold as reserves are also called the economy's
A) checkable deposits. B) money market funds. C) high-powered money. D) bankers' acceptances.
A profit-maximizing monopolist never produces along the __________ portion of the demand curve because marginal revenue is __________ there
a. elastic; positive b. elastic; negative c. inelastic; negative d. inelastic; positive e. inelastic; zero
The law of diminishing marginal returns states
A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline. B) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline. C) that in the presence of a fixed factor, at some point average product of labor starts to fall as more and more variable inputs are added. D) average total costs of production initially fall and after some point starts to rise at a decreasing rate as output increases.
Within perfect competition, an individual firm would not be able to affect ______ and is therefore known as a price-taker, yet a market as a whole can affect price by changing market output.
Fill in the blank(s) with the appropriate word.