Suppose that Figure 10.4 shows a monopolist's demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by charging a price of:
A. $35.
B. $25.
C. $20.
D. $16.
Answer: A
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All of the following are examples of stock variables except one. Which one?
a. The amount of currency in circulation b. The amount of money earned each week c. The amount of money needed to construct a new building d. The amount of money in a person's savings account e. The amount of money at the Fed
If a tax is levied on the sellers of a product, then the demand curve will
a. shift down. b. shift up. c. become flatter. d. not shift.
Which of the following would shift the investment demand curve leftward?
a. Lower operating costs for capital goods b. Higher business taxes on capital goods c. Higher expected rates of return on investment in capital goods d. Lower maintenance costs for capital goods
Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that:
A. GSU's supply curve of education is downsloping. B. the supply of education provided by GSU has also increased over the 20-year period. C. school-age population, incomes, and preferences for education have changed over the 20-year period. D. higher education is an exception to the law of demand.