The demand for a monopoly's output is p = 200 - Q. The monopoly's production function is Q = 2L, and the market wage is $4. How many units of labor will the monopolist employ at its profit maximization level of output?
A) L = 49.5
B) L = 4623
C) L = 198
D) L = 10
A
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The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the firms' surplus?
A) area A B) area B C) area C D) area D E) area E
To maximize its profit, a single-price monopoly produces the amount of output so that its marginal revenue
A) equals zero. B) equals its marginal cost. C) exceeds its marginal cost but not necessarily by as much as possible. D) is less than its marginal cost. E) exceeds its marginal cost by as much as possible.
In the United States during the period from 1870 to 1940, the price level was most likely to
A. fluctuate. B. increase. C. decrease. D. trend generally upward.
Supply restrictions in the farming industry occur in the form of
A. Production subsidies. B. Import quotas. C. Government stockpiles. D. Price supports.