The unregulated, single-price monopolist illustrated in the figure above makes an economic profit of
A) zero.
B) $8.00 per day.
C) $10.00 per day.
D) $40.00 per day.
B
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If the producer is at combination B as shown in Table 3-2, the opportunity cost of increasing corn production by 1 unit is
A. 29 units of cotton. B. 5 units of cotton. C. 12 units of cotton. D. 4 units of cotton. E. 1 unit of cotton.
Which of the following is likely to happen if people suddenly become more willing to lend money? a. An increase in demand for loanable funds will increase the interest rate
b. An increase in the supply of loanable funds will increase the interest rate. c. An increase in the supply of loanable funds will decrease the interest rate. d. An increase in demand for loanable funds will decrease the interest rate. e. A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest.
A valid and useful theory of gold prices:
A. very likely includes as many details as possible about gold prices. B. helps to explain and predict the movements of gold prices over time. C. all of the above D. very likely relies on complex assumptions.
If a consumer is willing to pay $5,000 for a used car that is a free of mechanical problems and $1,000 for a used car that will require extensive repairs, the consumer will offer:
A. $5,000 for a used car if the probability that it is free of mechanical problems is 50 percent. B. $3,000 for a used car if the probability that it is free of mechanical problems is 50 percent. C. $6,000 for a used car if the probability that it is free of mechanical problems is 50 percent. D. $1,000 for a used car if the probability that it is free of mechanical problems is 50 percent.