Because of a decrease in labor costs, a monopoly finds that its marginal cost and average total cost have decreased. The monopoly ________ its price and ________ its quantity
A) raises; increases
B) raises; decreases
C) lowers; increases
D) lowers; decreases
C
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If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________
A) rises; increases B) rises; decreases C) falls; decreases D) falls; increases
Refer to Figure 15-6. The monopolist's total revenue is
A) $1,116. B) $1,488. C) $1,726.40 D) $1,826.
Prior to the 1980s, S&Ls and mutual savings banks were restricted almost entirely to
A) commercial real estate loans. B) home mortgages. C) education loans. D) vacation loans.
Which of the following is true?
a. Positive economics deals with how people react to changes in benefits, and normative economics deals with how people react to changes in costs. b. Positive economic statements are testable, but normative statements are not. c. Positive economic statements involve value judgments while normative economics focuses on whether a policy will achieve its intended objectives. d. Positive economic statements focus on policy issues while normative economics focuses on economic theory.