Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Q = 20,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year?
A. $12.50
B. $25.00
C. $37.50
D. $50.00
A. $12.50
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Which of the following factors pushes the per-worker production function of an economy downward?
a. A stable political environment b. A high risk of terror attack c. An increase in educated workforce in the country d. An increase in road networks in the country e. A law encouraging foreign investment
One way that natural monopolies are typically regulated is
a. by setting a price that makes economic profit zero. b. by forcing the firm to set price equal to marginal cost c. by setting a price that gives owners a "fair rate of return" d. by forcing the firm to set price equal to minimum average total cost e. by setting a price that maximizes the firm's economic profit
Which of the following Federal Reserve Banks is most instrumental in carrying out the policy directives of the Board of Governors?
A. The Federal Reserve Bank of Richmond B. The Federal Reserve Bank of St. Louis C. The Federal Reserve Bank of San Francisco D. The Federal Reserve Bank of New York
In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. CheapFizz now has market power due to:
A. network economies in the consumption of soda. B. its exclusive ownership of an input. C. its exclusive license to sell soda. D. economies of scale in the production of soda.