Which of the following statements is true for a monopolist?
a. a monopolist will charge the highest price for which he can sell units of his product.
b. unregulated monopolists can gain by producing their chosen output at a low cost.
c. if a firm has a monopoly, it will always be able to earn economic profit.
d. none of the above statements are true.
B
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Refer to Figure 5.1. All else equal, an increase in the capital stock will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.
If August futures for a commodity are currently trading at $9.30/bushel, and you expect the basis in July to be $0.30/bushel over the August futures, then you expect the July cash price to be:
A. $9.05/bushel under August B. $9.55/bushel over August C. $9.00/bushel D. $9.60/bushel
What caused 25,000 workers to be laid off in the boat industry?
a. the 10 percent luxury tax b. the 5 percent income tax c. the 15 percent real estate tax d. the 8 percent gift tax
When workers boycott a company because it does business with a firm whose employees are on strike, that is a
A) secondary boycott. B) primary boycott. C) strike. D) sympathy strike.