In the above figure, if this natural monopolist were unregulated, the profit maximizing firm would produce
A. past the Q3 output rate.
B. at Q3 output rate.
C. at Q2 output rate.
D. at Q1 output rate.
Answer: D
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To answer the next question, use the following table, which shows the demand schedule faced by Ninaskets, a pure monopoly selling baskets.PriceNumber of Baskets Sold$203185167141012151030What is the change in total revenue if the pure monopoly lowers the price from $20 to $18?
A. $10 B. $20 C. $30 D. $40
DeBeers was able to profit the most from the diamond market by selling a:
A. lot of diamonds at low prices. B. few diamonds at high prices. C. lot of diamonds at high prices. D. few diamonds at low prices.
A Gini of 0 implies that:
a. every family has an equal amount of income. b. the top 10% of the families appropriate almost 100% of the total income. c. the bottom 90% of the families have only 10% of the total income. d. the bottom 20% of the families have 80% of the total income. e. only 1 family appropriates the entire national income.
When society can not produce all the goods and services people want, it is faced with a. scarcity
b. surpluses. c. inefficiencies. d. inequalities.