If a monopolist produces to a point at which marginal revenue is greater than marginal cost then
A. profits will always be negative.
B. the incremental cost of producing the last unit exceeds the incremental revenue.
C. profits are being maximized.
D. the incremental cost of producing the last unit is less than the incremental revenue.
Answer: D
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The above figure represents the demand and marginal revenue curves for Sue's Seafood, a seller of fresh fish
a. Over what range of output is demand elastic? b. Over what range of output is demand inelastic? c. What price maximizes total revenue? d. What is the price elasticity of demand at the revenue maximizing price?
In recent times, there has been a decline in the sale of newspapers in the U.S. as people prefer to read the news on the internet. This has caused many newspaper journalists to lose their jobs. This is an example of: a. structural unemployment. b. frictional unemployment. c. cyclical unemployment
d. seasonal unemployment. e. underemployment.
Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. Now suppose the director offers Matt $50 per hour, but also announces that the earnings from the job will be divided equally among Matt and the 99 other students who live in Matt's dorm. Will Matt accept this job?
A. Yes, although accepting the job means a negative surplus for Matt, still it's better than having no job. B. Yes, accepting the job means a positive surplus for Matt. C. No, although accepting the job means a positive surplus for Matt, still it's not the best option for him. D. No, accepting the job means a negative surplus for Matt.
Economists who focus on fiscal austerity focus on the short-run.
Answer the following statement true (T) or false (F)