A profit maximizing monopoly will produce that output for which:
a. marginal revenue equals price.
b. average cost is minimized.
c. marginal cost is minimized.
d. marginal cost equals marginal revenue.
d
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Place point Z on the graph to indicate where the United States economy will most likely operate five years from now if we enjoyed an economic growth rate of 5 percent a year.
An advantage emission taxes and permits have over direct controls is that the former
A. works well even if pollution output cannot be accurately measured. B. can respond quickly to new information about the dangers of particular pollutants. C. makes it in firms’ interests to reduce pollution in the most efficient manner possible. D. reduces pollution to zero.
The CAPM does not consider risk-free investments
Indicate whether the statement is true or false
For a particular good, a 5 percent increase in price causes a 2 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are many close substitutes for this good. b. The good is a luxury. c. The market for the good is broadly defined. d. The relevant time horizon is long.