The monopolist will choose the price and output combination at which
A) MC equals AR.
B) MC equals MR.
C) MC equals price.
D) MR equals AR.
B
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Exhibit 6-1 Refer to Exhibit 6-1. Prices rose by approximately __________ percent from Year 1 to Year 5.
a. 10.6 b. 9.6 c. 14.3 d. 4.5
Suppose you purchase shares in Acme Gadget Company for $10 per share. The company believes there is a 20 percent chance it will fail to earn a discounted future profit of $1.85. What is the expected rate of return on your investment?
A. 18.5 percent. B. 20.0 percent. C. 13.5 percent. D. 14.8 percent.
Suppose the government of an importing country is considering imposing a tariff that would result in imports falling to 1 million units per year, or an import quota of 1 million units per year. Which of the following best describes the difference in the impact of these alternative trade restrictions?
a. The domestic price of the imported good will rise higher with the tariff than with the quota. b. Importing-country consumers are made worse off with the quota than with the tariff. c. Domestic producers that compete with the imports are made better off by the tariff than with the quota. d. The tariff provides the government of the importing country with revenue, while the quota provides gains to foreign exporting firms with quota rights.
the multiplier is a value between zero and one
a. true b. false