In comparison to firms in other market structures, monopolists:
A) maximize social surplus.
B) encourage the entry and exit of new firms.
C) set price lower than marginal revenue.
D) produce goods that do not have close substitutes.
D
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When a country imposes an import quota, its exchange rate
a. rises because the supply of dollars in the market for foreign-currency exchange falls. b. falls because the supply of dollars in the market for foreign-currency exchange rises. c. rises because the demand for dollars in the market for foreign-currency exchange rises. d. falls because the demand for dollars in the market for foreign-currency exchange falls.
Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes in the market are lemons (low quality), what fraction of used bikes sold will actually be plums (high quality)?
A. 8/30 B. 22/30 C. 8/22 D. 30/30
If an industry's long-run per-unit costs decrease as its output increases then
A. the firm is most likely a decreasing-cost industry. B. the firm is most likely an increasing-cost industry. C. the firm's long-run economic profits must be less than zero. D. the firm is most likely a constant-cost industry.
Which of the following statements best describes the concept of consumer surplus?
A) "I paid $89 for a microwave oven last week. This week the same store is selling the same microwave oven for $69." B) "I sold my hard copy of Harry Potter and the Half-Blood Prince to a used book store for $10 even though I was willing to sell it for $5." C) "Target was having a sale on tube socks so I bought 5 pairs." D) "I was going to pay $200 for new sunglasses that I had seen at the Oakley store but I ended up paying only $140 for the same sunglasses."