The marginal cost of a monopolist is constant and is $10. The demand curve and marginal revenue curves are given as follows:
demand: Q = 100 - P
marginal revenue: MR = 100 - 2Q
The deadweight loss from monopoly power is ________.
A) $1000.00
B) $1012.50
C) $1025.00
D) $1037.50
E) none of the above
B
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Employment tends to be
A) procyclical and less variable than real GDP. B) procyclical and more variable than real GDP. C) countercyclical and less variable than real GDP. D) countercyclical and more variable than real GDP.
Recessionary gap arises when
a. inventory stock falls. b. government spending increases. c. when the general price level increases. d. there is less spending than desired.
In response to the demands of environmentalists, large sections of timberlands are put off limits to logging. What effect will this have on the aggregate supply curve?
a. Shift it outward. b. Shift it inward. c. Move the economy up along the curve. d. Move the economy down along the curve.
Recent legislation passed by the government increases the cost of health insurance and retirement benefits borne by all companies. Which of the following is a likely result? a. The supply of labor will decrease
b. The quantity of labor demanded will increase. c. The demand for labor curve will shift to the left. d. The marginal product of labor will increase.