A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by
A) taking the height of the marginal revenue curve at output rate Q*.
B) taking the height of the marginal cost curve at output rate Q*.
C) taking the height of the demand curve at output rate Q*.
D) setting price equal to marginal cost.
C
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The requirement that firms doing business with the federal government set numerical hiring, promotion, and training goals to reduce discrimination was
a. included in the Civil Rights Act of 1964 b. signed by President Johnson c. first proposed in the Nixon administration d. first proposed in the Carter administration e. first proposed in the Equal Rights Amendment
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions balance in the context of the Three-Sector-Model? a. The quantity of real loanable funds
per time period falls and current international transactions balance becomes more positive (or less negative). b. The quantity of real loanable funds per time period rises and current international transactions balance becomes more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions balance remain the same. d. The quantity of real loanable funds per time period rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
When a binding price floor is imposed on a market,
a. price no longer serves as a rationing device. b. the quantity demanded at the price floor exceeds the quantity that would have been demanded without the price floor. c. all sellers benefit. d. All of the above are correct.
A profit-maximizing monopoly will spend on a process innovation
a. up to the point where P = MC.
b. up to the point where P = AC.
c. anywhere where MR>MC.
d. up to the point where MR = MC.
e. anywhere where MR