In order to eliminate the inefficiency brought about by a monopoly, the government wants to impose a price ceiling on the monopoly. What is the optimal price to be imposed?
A. The competitive price, unless it is below ATC.
B. The competitive price, unless it is below MR.
C. The competitive price
D. The competitive price, unless it is above ATC.
Answer: A
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Menell's study showed that in terms of effectiveness,
A) mandatory separation of recyclables was best, followed by curbside charges and finally refundable deposits. B) mandatory separation of recyclables was best, followed by refundable deposits and finally curbside charges. C) curbside charges were best, followed by refundable deposits and finally mandatory separation of recyclables. D) curbside charges were best, followed by mandatory separation of recyclables and finally refundable deposits. E) refundable deposits were best, followed by curbside charges and finally mandatory separation of recyclables.
Which of the following would cause a change in imports?
a. A change in foreign income b. A change in foreign consumption c. A change in domestic tastes for foreign products d. A change in foreign tastes for domestic products e. A change in domestic investment spending
During the 1970s, U.S. prices generally rose faster than prices in other parts of the world. Which of the following changes would the open economy effect predict took place in response to these price level changes? a. Americans reduced the proportion of foreign goods bought since their foreign prices became relatively lower. b. Americans reduced the amount of investment they undertook because
interest rates increased. c. Americans reduced the amount of goods and services they wanted to purchase for consumption because they felt less wealthy. d. Americans reduced the fraction of purchases they made from domestic producers of goods and services, since foreign prices became relatively lower.
The unemployment rate is usually zero except during recessions
a. True b. False