A monopolist will earn economic profits as long as his price exceeds
a. marginal revenue.
b. average fixed cost.
c. average variable cost.
d. average total cost.
D
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Consider the market for bread. If the price of wheat rises, then the
A) demand curve for bread shifts leftward. B) supply curve of bread shifts leftward. C) price of bread falls. D) equilibrium quantity of bread increases. E) demand curve for bread shifts rightward.
The narrowest definition of money:
A. is referred to as hard money. B. includes the things that can be used in transactions immediately. C. contains only cash and bank reserves held at the Fed. D. All of these are true.
Rhode Island has enacted a substantial increase in the tax on employers that finances the workman's compensation system. For some employers, the tax is about $25 per $100 paid in wages. Employers claim they cannot afford to pay the tax. Under which of the following conditions will the actual burden of the tax fall on employers?
a. The employers' demand for labor is perfectly elastic. b. The supply of labor is perfectly inelastic. c. The employers' demand for labor is perfectly inelastic. d. The demand for the good they produce must be perfectly inelastic.
The necessary condition(s) to realize economies of scale include
A. having the financial resources for the high capital costs. B. having sufficient demand for the product. C. both financial resources for the high capital costs and sufficient demand for the product.