A monopolist might keep the prices below the profit maximizing level:
a. to attract new firms to the market.
b. to increase producer surplus.
c. due to government intervention and scrutiny.
d. due to economies of scale.
c
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Which of the following goods would be considered legally non-excludable?
Reduction in the quality of agricultural land through overuse is called
a. degradation b. deforestation c. desertification d. defenestration. e. none of the above
The consensus estimate of the elasticity of labor supply among females is ?0.1. The interpretation of this estimate is what?
A. On average, women will increase hours of work by 1% when their wage increases by 10%. B. On average, women will reduce hours of work by 1% when their wage increases by 10%. C. On average, women will increase hours of work by 10% when their wage increases by 1%. D. On average, women will reduce hours of work by 10% when their wage increases by 1%. E. On average, women will reduce hours of work by 5% when their wage increases by 10%.
Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. Refer to Scenario 9.3. Total fixed costs per week are
A. $1,000. B. $2,000. C. $3,000. D. $4,500.