Suppose that Figure 10.4 shows a monopolist's demand curve, marginal revenue, and its costs. At the profit-maximizing output level, the monopolist's profit would be:
A. $730.
B. $570.
C. $320.
D. $150.
Answer: B
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When discussing rules that governments use to intervene in a market, we can take a ________ approach where we discuss what governments should do, or a ________ approach where we discuss what governments actually do
A) normative; positive B) positive; normative C) optimistic; cynical D) bipartisan; normative
Answer the following statement(s) true (T) or false (F)
1. A systems approach to the flow of materials and energy between industrial processes and the environment is known as a life cycle assessment. 2. Industrial ecology and sustainable development are equivalent concepts. 3. Residuals are quantities of pollutants left in the environment after some natural or technological process has occurred. 4. A linear flow of materials assumes that materials move in a single direction, entering as inputs and leaving as residuals. 5. A closed flow of materials is one in which residuals are returned to the production process.
Refer to the graph shown. If this monopolist were allowed to choose the profit-maximizing level of output, it would produce:
A. 200 units of output. B. 450 units of output. C. 125 units of output. D. 400 units of output.
Producer surplus is measured as the area
A. below the demand curve and above the market price. B. below the supply curve and above the market price. C. above the supply curve and below the market price. D. above the demand curve and below the market price.