Assume that at a given output a monopolist's marginal revenue is $25 and its marginal cost is $18. If the monopolist increases output, then
A. price, marginal cost, and total profit will fall.
B. price will fall, marginal cost will rise, and total profit will rise.
C. price will rise, marginal cost will fall, and total profit will rise.
D. price, marginal cost, and total profit will rise.
B. price will fall, marginal cost will rise, and total profit will rise.
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Which of the following is a reason why firms can be more efficient than markets as coordinators of economic activity?
A) economies of scale and scope B) higher transactions charges C) elimination of the principal-agent problem D) all of the above
Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S
aggregate demand. A) increase; decrease B) decrease; increase C) decrease; decrease D) increase; increase
Which of the following would NOT reduce the natural rate of unemployment?
A) a tax cut B) an increase in government expenditures C) wage or price controls D) all of the above
"The government should provide health care for all citizens." This statement is an illustration of:
A. positive economic analysis. B. correlation analysis. C. fallacy of association analysis. D. normative economic analysis.