If at the profit-maximizing level of output, a monopolist's average-total-cost curve lies above its demand curve, then:
a. the firm should shut down in the short run.
b. the firm would earn economic losses.
c. the firm would earn economic profits.
d. the firm should increase its output.
e. the firm should decrease its output.
b
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Skateboards International of Mavericks Beach, California, was able to sell 20,000 skateboards at a price of $60 last year. This year it is able to sell only 12,000 of the same skateboards at a price of $60. Evidently, Skateboard International has experienced a(n):
a. increase in quantity supplied. b. increase in demand c. increase in supply. d. decrease in demand.
The most used tool of the Fed is:
A. open market operations. B. These are all used with equal frequency. C. the reserve requirement. D. the discount window.
One feature of pure monopoly is that the demand curve:
A. is vertical. B. slopes downward. C. is horizontal. D. slopes upward.
Economics is a social science that studies how individuals, institutions, and society may:
A. Expand the amount of resources available to them B. Attain a minimum level of production C. Best use resources to maximize satisfaction of economic wants D. Reduce the amount of goods and services they need