What is the total profit to the monopolist from selling the goods separately?
a. $12,000
b. $13,000
c. $11,000
d. $10,000
c
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The efficiency of competitive markets happens because
A) of the benevolence of the butcher, the brewer, and the baker. B) people make environmentally aware purchasing decisions. C) prices adjust to make buying plans and selling plans compatible. D) government organizes and monitors production. E) the U.S. economy uses a command system to allocate resources within the competitive markets.
Zero economic profits for a perfectly competitive firm in the long run means
a. the firm must exit the industry. b. the firm is in equilibrium. c. the firm will shut down until the market improves. d. average revenue is insufficient to cover long-run average cost.
Which one of the following statements is correct?
a. Policymakers have good intentions and therefore their proposals will create good outcomes. b. Potential secondary effects do not need to be considered when deciding whether to implement a new government program. c. A good outcome is guaranteed from a government program if it is created with good intentions. d. Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If Sarah and Joe are working on a project together and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. Joe will put forth low effort, and Sarah will put forth high effort. B. both Joe and Sarah put forth low effort. C. both Joe and Sarah put forth high effort. D. Joe will put forth high effort, and Sarah will put forth low effort.