When the marginal benefit of an output exceeds the marginal cost:
A. Production of that output should be increased, in order to achieve efficiency
B. Production of that output should be decreased, in order to achieve efficiency
C. Increasing the production of that output would increase the deadweight loss
D. Reducing the production of that output would reduce efficiency losses
A. Production of that output should be increased, in order to achieve efficiency
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A monopolist may choose a price lower than the profit maximizing price because?
a. its costs curves are not the most efficient in the market b. it wants to prevent the government from deciding to regulate the monopoly c. the market prefers a lower price d. it want to encourage potential competitors to enter the market
One way to deal with the efficiency problem of monopolies is to tax the profits of monopolists.
Answer the following statement true (T) or false (F)
Intergovernmental revenue is an insignificant source of state and local revenue
a. True b. False
When a firm advertises, it is attempting to
a. shift its supply curve to the right b. shift its supply curve to the left c. shift its demand curve to the right d. shift its demand curve to the left e. create a surplus