Collusive control over price may permit monopolists to:
A. Use new technology, achieve economies of scale, and get government subsidies
B. Achieve economies of scale, reduce costs, and prevent price cheating
C. Increase product demand, increase product supply, and lower cost
D. Reduce uncertainty, increase profits, and possibly limit entry of new firms
D. Reduce uncertainty, increase profits, and possibly limit entry of new firms
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The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that
A) monopolies don't have a supply curve. B) monopolies don't have a demand curve. C) monopolies have the same supply curve as perfectly competitive firms. D) monopolies maximize profit.
When contemplating the purchase of a resource, the pure monopsonist should do which of the following to maximize profit?
A) Purchase enough to make the marginal expenditure equal to the marginal revenue product. B) Purchase enough to make the average expenditure equal to the marginal revenue product. C) Pay a wage equal to the value of MRP at the intersection of MRP and ME curves. D) Pay a wage equal to the value of MRP at the intersection of AE and MRP curves.
Describe the market process that should occur if the price of a product is below its equilibrium price; now describe what would occur if the price is above its equilibrium price, assuming no market interference
What will be an ideal response?
A budget surplus
a. occurs when the government has debt equal to zero. b. causes government debt to increase. c. exists when government spending is greater than tax revenues. d. reduces the government's debt.