A monopoly always operates in the inelastic portion of its demand curve
Indicate whether the statement is true or false
False. A monopoly never operates in the inelastic portion of its demand curve. Marginal revenue is negative in this region.
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Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?
A) 3 percent per year B) 2 percent per year C) 5 percent per year D) 10 percent per year
Trade allows each country to take advantage of lower ___________ costs in the other country.
a. replacement b. opportunity c. marginal d. retail
You observe that at your current production of rutabaga, the average total cost of producing rutabaga is $1 and the marginal cost of producing rutabaga is $2. What should always happen if you increase rutabaga production?
A. Marginal cost will fall. B. Average total cost will rise. C. Average total cost will fall. D. Both Marginal cost will fall and Average total cost will rise are correct.
Experience ratings provide firms with an incentive NOT to:
A. hire older workers. B. invest in health and safety programs. C. hire disabled workers. D. both hire older workers and hire disabled workers