A profit-maximizing monopolist produces an output level at which
a. marginal revenue is the greatest distance from marginal cost
b. price is less than marginal cost
c. the value to society of the last unit produced equals marginal cost
d. marginal revenue equals marginal cost
e. consumers wish to purchase less than what is produced because of high monopoly prices
D
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The marginal productivity theory of income states that a person's total income is determined by
A) how much the individual works. B) how profitable the firm the individual works for is. C) how much the individual has inherited. D) the amount and productivity of factors of production the individual owns.
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half, the government mandates system whereby each firm must reduce its pollution level by one-half. The total cost of complying with the mandate is
A. $433. B. $1,540. C. $2,750. D. $8,570. E. $11,650.
In December of 2007, with an unemployment rate of 5.0 percent, most economists believed this was above the natural rate
a. True b. False Indicate whether the statement is true or false
Gross investment minus depreciation is equal to
A. non-residential investment. B. gross national product. C. the change in capital stock. D. the value of durable goods.