A non-discriminating monopolist's marginal revenue curve lies below its demand curve because
a. economists put it there by convention
b. in order to earn more profit, the monopolist must charge higher prices
c. a monopolist gouges its customers
d. in order to increase their profits, monopolists must produce in the inelastic range of the demand curve
e. in order to increase the number of units sold, the firm must lower the price on all units sold
E
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If reserves in the banking system increase by $200, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is
A) 0.04. B) 0.25. C) 0.40. D) 0.50.
Which of the following best describes the marginal product of labor for an additional employee in a landscaping firm?
A. The additional profits the firm earns because of that employee B. The additional wages the firm must pay in labor costs because of that employee C. The extra money the firm brings in because of that employee D. The number of additional acres the firm can mow in a week because of that employee
When farmers take part in the soil-bank program, they receive
a. additional allotments of acreage in the future b. income, including government subsidies, for goods produced on that land c. payments for producing nothing on the acres put into the soil bank d. preferential tax treatment e. residential property tax credits
Opportunity costs differ among nations primarily because
a. nations employ different currencies. b. nations have different amounts of land, labor skills, capital, and technology. c. nations have different religious, political, and economic institutions. d. the work-leisure preferences of people vary considerably from one nation to another.