Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, consumer surplus is ________.
A. $9,000
B. $4,500
C. $2,000
D. $4,000
Answer: C
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Compensatory damages are meant to reimburse for:
a. actual losses, economic in nature b. actual losses, noneconomic in nature c. the wrongful behavior causing injury d. all of the above e. a and b only
On Thanksgiving, Jake's mother gives him a huge platter of food. If Jake were to keep eating just to please his mother (even when he really wanted to stop), his marginal utility would be:
a. the same as his total utility. b. large. c. minus one. d. positive. e. negative.
In a market economy, differences in incomes: a. reflect the relative scarcity of resources
b. provide individuals with an incentive to supply resources that are valued by others. c. determine the income distribution among market participants. d. all of the above are correct.
The best public policy solutions to address the disruptions of foreign trade typically do not involve ____________.
a. politics b. public opinion c. economics d. protectionism