A nondiscriminating pure monopolist finds that it can sell its 50 th unit of output for $50. We can surmise that the marginal:
A. cost of the 50 th unit is also $50.
B. revenue of the 50 th unit is also $50.
C. revenue of the 50 th unit is less than $50.
D. revenue of the 50 th unit is greater than $50.
Answer: C
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Autonomous tightening of monetary policy involves ________
A) raising interest rates and shifting the MP curve to the right B) lowering interest rates and shifting the MP curve to the left C) raising interest rates and shifting the MP curve to the left D) lowering interest rates and shifting the MP curve to the right E) none of the above
Consider a potato farmer whose cost of production is $2.25 a bushel. In May, she expects that the potato when harvested in July will sell for either $2 a bushel or $3.00. She could avoid the probability of a loss by contracting to deliver the potatoes in July at $2.50. Such a contract is traded in a
a. futures market. b. spot market. c. portfolio market. d. diversified market.
The factor that leads to underpricing and overuse of an economic resource is
A. human greed and selfishness. B. capital markets. C. the lack of an enforceable property right. D. the lack of understanding of pollution and its effects.
One reason the Chinese buy a great deal of U.S. government debt is because:
A. owning US debt is a sign of economic prosperity for China. B. the rate of return for U.S. government bonds is higher than any other investment. C. they have dollars left over from the sale of their goods to the U.S. and want to buy something dollar denominated. D. the risk involved is lower for U.S. government bonds than for any other government bond in the world.