When a monopoly is created through government franchise,
a. the firm is assured of above-normal profit
b. it is subject to government price regulation
c. the firm will discontinue any rent-seeking activity
d. price discrimination is forbidden
e. the government prevents both entry and exit in the long run
B
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When marginal revenue product of an input is less than its price, the producers should use less of the input.
Answer the following statement true (T) or false (F)
The above table shows the short-run total product schedule for the campus book store. What is the marginal product (MP) of going from 5 to 6 employees at the book store?
A) 83 books sold B) 13.83 books sold C) 10 books sold D) between 11 and 14 books sold
The following equations represent the demand and supply for bottles of nail polish
QD = 25 - P QS = -15 + 3P What is the equilibrium price (P) and quantity (Q - in thousands) of bottles of nail polish? A) P = $15; Q = 30 thousand B) P = $10; Q = 15 thousand C) P = $20; Q = 5 thousand D) P = $5; Q = 20 thousand
The deadweight loss represent the sum of added consumer and producer surplus if the firm would produce the quantity where P = MC
Indicate whether the statement is true or false