From society's point of view, a monopolist produces too little because price
A. is less than average cost.
B. exceeds marginal cost.
C. is less than marginal cost.
D. exceeds average cost.
Answer: B
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The assumption that individuals do NOT intentionally make decisions that would leave them worse off is referred to as
A) the premium assumption. B) the law of comparative advantage. C) the rationality assumption. D) the law of demand.
Tom is buying a quantity of wheat at which the marginal utility (in dollars) exceeds price. He should
a. reduce wheat consumption, thus raising P to the level at which MU = P. b. reduce wheat consumption, thus raising MU to the level at which MU = P. c. increase wheat consumption, thus raising P to the level at which MU = P. d. increase wheat consumption, thus lowering MU to the level at which MU = P.
Price Per UnitQuantity Demanded Per Unit of Time$2012$1817$1620$1424$1230$1036$840$644$448Refer to the above data. What is the price elasticity of demand over the range of $8 to $10?
A. 0.47 B. 1.43 C. 1.93 D. 0.11
If the U.S. dollar becomes weaker in international markets, the net effects will include
A. an increase in both short run aggregate supply (SRAS) and aggregate demand. B. an increase in short-run aggregate supply (SRAS) and a decrease in aggregate demand. C. a decrease in short-run aggregate supply (SRAS) and an increase in aggregate demand. D. a decrease in both short run aggregate supply (SRAS) and aggregate demand.