In the absence of recurring fixed costs, a monopolist will always produce a positive output quantity.
Answer the following statement true (T) or false (F)
False
Rationale: Only if MR crosses MC -- which it will not if MC lies entirely above the market demand curve.
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The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a tax on gasoline is imposed as shown in the figure, then the total tax revenue earned by the government equals
A) $24 million. B) $16 million. C) $8 million. D) more than $24 million. E) less than $8 million.
In most circumstances, employees do not pay taxes on the value of health insurance their employers provide them
Indicate whether the statement is true or false
If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, this reduces its profit by
A) K - G. B) K + G. C) G - K. D) G + H. E) G.
When the money market is drawn with the value of money on the vertical axis, if money demand shifts leftward, then initially there is an
a. excess demand for money which causes the price level to rise. b. excess demand for money which causes the price level to fall. c. excess supply of money which causes the price level to rise. d. excess supply of money which causes the price level to fall.