A monopolist determines the profit-maximizing output
A) at the point at which TR = TC.
B) at the point at which MR = MC.
C) at any point it wants because it is the only producer of the product.
D) at the point at which TR is maximum.
Answer: B
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Which of the following is not a characteristic of oligopoly?
A) the ability to influence price B) a small number of firms C) interdependent firms D) low barriers to entry
Explain how derivatives were used to increase risk making the financial crisis of 2007–2009 more severe.
What will be an ideal response?
Which of the following conclusions is not supported by the Three-Sector-Model?
a. A decrease in borrowing causes the real risk-free interest rate to fall and equilibrium quantity of real loanable funds to fall. b. An increase in the supply of a nation's real loanable funds reduces the real risk-free interest rate and increases the equilibrium quantity of real loanable funds. c. An increase in a nation's demand for goods and services within the intermediate range results in an increase in the real GDP and a higher GDP Price Index. d. An increase in the value of a nation's currency encourages domestic exports and discourages imports. e. All of the above are supported by the Three-Sector Model.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. Jerry has a comparative advantage in:
A. dish production because he has the higher opportunity cost of a dishes. B. fence production because he has the higher opportunity cost of a fence. C. dish production because he has the lower opportunity cost of a dishes. D. fence production because he has the lower opportunity cost of a fence.