When a pure monopolist is producing its profit-maximizing output, price will:
A. be less than MR.
B. equal neither MC nor MR.
C. equal MR.
D. equal MC.
Answer: B
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Timmy and Tommy are considering contributing to a project. If both contribute, each receives a payoff of 20. If neither contribute, each receives a payoff of 10
If only one person contributes, the person who contributes receives a payoff of 14 and the person who does not contribute receives a payoff of 18. Will the public goods problem prevent this project from being completed? Explain why or why not.
Which of the following statements is correct?
a. The benefits that accrue to a monopoly's owners are equal to the costs that are incurred by consumers of that firm's product. b. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity. c. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product. d. The primary social problem caused by monopoly is monopoly profit.
The concept that describes the situation where the economy has used every available opportunity to make someone better off without making someone else worse off is
A. economic efficiency. B. the benefits principle. C. horizontal equity. D. vertical equity.
Which of the following is an example of an in-kind transfer?
A. Medicaid. B. Social Security. C. Income transfers. D. TANF.