In monopoly when abnormal profits are made:
a) The price set is greater than the marginal cost
b) The price is less than the average cost
c) The average revenue equals the marginal cost
d) Revenue equals total cost
Answer: a) The price set is greater than the marginal cost
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Bart is seen standing in front of the cooler that contains containers of iced tea and lemonade. Moments later, we see Bart drinking iced tea, and we conclude Bart is getting more utility from that drink than lemonade. We drew that conclusion based on what economic concept?
A. Revealed preference B. Utility minimization C. Satisfaction scales D. Rational behavior
According to the following graph, at point B,
The consumer's income is $1,200.
A. the consumer will receive more Y for each unit of X exchanged in the market than at point A. B. the rate at which the consumer is willing to substitute X for Y is greater than it is at point A. C. the consumer is willing to give up more Y in order to gain an extra unit of X than at point A. D. both a and b E. all of the above
If the euro replaces the U.S. dollar as the world's most popular currency, that will likely ________
A) reduce M1, without affecting M2 B) reduce M2, without affecting M1 C) cause a temporary increase in M1 D) affect neither M1 nor M2 E) none of the above
In a pure monopoly, price of a product is determined by which of the following?
a. Consumer Price Index (CPI) b. Regulatory body c. Referendum to the voters d. Alternative product pricing strategy