To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level
Indicate whether the statement is true or false
TRUE
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On January 1, Rick's Photo owned $50,000 of equipment. During the year, the value of the equipment fell by $10,000, plus Rick bought $25,000 in new equipment. Rick's company experienced
A) an increase of net investment of $35,000. B) $40,000 of depreciation. C) $10,000 of depreciation. D) a change in total financial capital of $15,000. E) an increase of new capital by $10,000.
A price discriminating monopsonist could increase its profits by:
a. paying the minimum wages possible. b. hiring as little capital as possible. c. paying lower wages to workers with inelastic supply of labor curves than to workers with elastic curves. d. paying lower wages to workers with elastic supply of labor curves than to workers with inelastic curves.
When exports exceed imports there is a(n):
A. trade balance. B. trade surplus. C. output gap. D. trade deficit.
CARFAX is a company that compiles and sells histories of used cars. Used car dealers offer to give their customers a copy of the CARFAX history of the cars in their inventory to:
A. give buyers additional information about used cars for sale. B. give sellers additional information about used cars for sale. C. cause adverse selection. D. avoid having to offer warranties.