If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A) profits are being maximized.
B) profits will always be negative.
C) the incremental cost of producing the last unit exceeds the incremental revenue.
D) the incremental cost of producing the last unit is less than the incremental revenue.
C
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A major reason why it is difficult to lower the barriers to free trade is
A) that total benefits are less than total costs from free trade. B) the uneven distribution of gains and losses from free trade. C) the loss of jobs without any gain of jobs from free trade. D) the inability to compensate losers from free trade. E) that the barriers allow us to compete with cheap foreign labor.
Consider an apple orchard owner deciding how to incentivize his fruit pickers to get them to pick more apples he should:
a. To pay the pickers per pound of apples picked b. To pay the pickers an hourly rate c. To pay the pickers an hourly rate plus a bonus d. To not pay the pickers
A monopolist would charge ____ prices and produce ____ output than would exist under perfect competition. a. higher; less
b. lower; more. c. higher; more. d. the same; the same.
Powers of many regulatory agencies are designed to protect public health and safety.
Answer the following statement true (T) or false (F)