Suppose P = 60 ? 3Q is the market demand function for a local monopoly. The marginal cost is 2Q. If fixed costs are zero and the firm engages in two-part pricing, the most profits the firm will earn is:
A. $0.
B. $504.
C. $360.
D. $144.
Answer: C
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Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse. Why would cod be on the risk of extinction?
A) Fishing in the sea for cod is an example of a public good. B) Fishing in the sea for cod is an example of a common resource. C) Fishing in the sea for cod is an example of a private good. D) Fishing in the sea for cod is an example of a natural monopoly.
Which of the following is NOT an obstacle to increased international economic integration?
A) Monopoly powers given to domestic companies of individual nations B) High tariff rates imposed by industrialized nations C) Health and safety standard requirements D) Labor and environmental standard requirements E) Income disparities among and within trading partners
On the diagram above, show the new steady-state capital-labor ratio that results from a decrease in the saving rate. Can you say what has happened to the equilibrium level of consumption per worker?
What will be an ideal response?
If the expenditure schedule lies above the level of potential GDP, then there is a(n)
a. recessionary gap. b. precautionary gap. c. deflationary gap. d. inflationary gap.