At its profit-maximizing output, the given nondiscriminating monopolist:
A. incurs a loss.
B. earns an economic profit of $250.
C. earns a normal profit of $250.
D. earns an economic profit of $150.
B. earns an economic profit of $250.
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To escape adverse selection and elicit high quality experience goods buyers can
a. offer price premiums to new firms in the market b. seek out unbranded goods c. buy from generic storefronts that have leased temporary space d. secure warranties from warehouse retailers e. none of the above
Quantitative easing refers to a situation in which conventional monetary policy is ineffective in fighting an economic slump because nominal interest rates are up against the zero bound
a. True b. False Indicate whether the statement is true or false
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the surplus producers receive when an $8 per unit price floor is imposed on the market.
A. $3. B. $1. C. $5. D. $2.
Unlimited liability exists when
A. the personal assets of the owner of a firm can be seized to pay off the firm's debts. B. the profits of the firm are taxed once. C. a firm dissolves when the owner dies. D. a corporation exists.