Which of the following best explains an economic criticism of unregulated monopolists?
A. Monopolists do not try to minimize their fixed costs of production.
B. Monopolists produce where marginal revenue is greater than marginal costs.
C. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options.
D. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
Answer: D
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Refer to the figure above. If there is downward wage rigidity in the market, what will be the unemployment in the market after the demand curve shifts to LD2?
A) 20 units of labor B) 5 units of labor C) 10 units of labor D) 15 units of labor
If a firm hires lazy employees,
A) it must pay them differently or hard-working employees will engage in moral hazard. B) it must pay them more or hard-working employees will engage in moral hazard. C) it must fire them before their laziness spreads to hard-working employees. D) the lazy employees make hard-working employees look good.
Suppose Sun Bakery sells cupcakes and buns, using various equipment and labor to make and deliver its products. Which of the following costs is a fixed cost for Sun Bakery?
a. The money paid to buy cupcake liners and flour b. The money paid to provide health benefits to the staff c. The money paid to workers as wages d. The money paid to pay back the loan taken to purchase commercial-grade ovens
In case of a backward-bending labor supply curve:
a. the income effect of a higher wage offsets the substitution effect. b. the substitution effect of a higher wage offsets income effect. c. the substitution effect of a higher wage equals income effect. d. there is no income effect at a higher wage rate.