Which of the following is always true of monopolists?
a. They charge the highest possible price.
b. They always earn high profits.
c. They do not have to worry about demand.
d. They charge a price higher than marginal cost.
d. They charge a price higher than marginal cost.
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A major earthquake occurs in the central part of the United States. What impact would this have on the nation's production possibilities frontier and why?
A) It would shift outward because unemployment would be reduced. B) Nothing would happen because the nation would still have the same capabilities. C) A tradeoff would occur to replace the resources and goods destroyed. D) It would shift inward because some of the nation's resources, such as capital and labor, would be destroyed. E) It would not shift because people would get to work to replace any capital that was destroyed.
Refer to the scenario above. If the best response of one bidder is to place a bid of $9,000, what is her maximum willingness to pay for the necklace?
A) $10,000 B) $9,000 C) $4,500 D) $18,000
The crucial incentive to produce new ideas comes from
A) patents and copyrights. B) international trade. C) rising population growth. D) shortages of physical and human capital. E) government economic guidance.
A dividend is the
A. corporation’s periodic payments to bondholders. B. the monthly compensation to the corporation’s board of directors. C. a payment of some of the corporation’s profits to its stockholders. D. a payment made to banks and other sources of funding for the corporation.