Profit-maximizing monopolists choose a level of output such that:
a. average total cost is minimized
b. price equals marginal revenue but exceeds average variable cost.
c. price equals marginal cost but exceeds average variable cost.
d. marginal revenue equals marginal cost.
d
You might also like to view...
The nation is divided into ________ Federal Reserve districts, each having a Federal Reserve Bank
A) 10 B) 50 C) 12 D) 7
The idea that new policies change the economic rules and affect economic behavior, so that no one can safely assume that historical relationships between variables will hold when policies change, is known as
A) Okun's Law. B) Say's Law. C) the equation of exchange. D) the Lucas critique.
Economists often examine GNP to estimate changes in the well being of people. If one only studied GNP, which of the following would lead one to overestimate the true increases in peoples' well being?
a. Decreasing average hours of work b. Increasing life expectancy c. Decreasing levels of pollution d. Decreasing amounts of production in the home e. Increases in product quality
Export-led growth policy involves:
A. favoring industries that export goods over those that only produce domestically consumed goods through high tariffs. B. investing heavily in industry through tax breaks and export subsidies with the aim of selling goods around the world. C. encouraging private investment in industries that currently export goods, rather than those expanding domestically. D. discouraging imports with high tariffs.