At a price of $10, the marginal revenue of a monopolist is $6. If the marginal cost of production is $8, what should the monopolist do in order to maximize profits?
A. Increase its price.
B. Decrease its price.
C. Keep its price at the same level.
D. There is not enough information to solve.
Answer: A
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The Service Employees International Union is an example of a(n)
A) guild. B) craft union. C) industrial union. D) public-sector union.
The sum of past federal deficits is reflected in the federal:
a. cyclical debt. b. Congressional debt. c. national debt. d. GDP debt.
Which of the following statements is (are) correct?
a. Relative to some other scientists, economists find it more difficult to conduct experiments. b. Theory and observation are important in economics as well as in other sciences. c. To obtain data, economists often rely upon the natural experiments offered by history. d. All of the above are correct.
The less freedom young mothers have to work outside the home, the
a. more elastic the supply of labor will be. b. less elastic the supply of labor will be. c. more horizontal the labor supply curve will be. d. larger is the decrease in employment that will result from a tax on labor.