Production costs are likely to rise after an average-cost pricing policy is mandated because the monopolist will:
A. increase output.
B. decrease output.
C. engage in new and inventive production methods.
D. have no incentive to control costs.
Answer: D
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You're traveling in Ireland and are thinking about buying a new digital camera
You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros. If the exchange rate is 0.85 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera? A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros
In Figure 32.1, at the market price-quantity combination where production is unlimited, and the government buys the excess, the consumer surplus is Image
A. P*AC. B. HP*C. C. HpfloorBG. D. APfloorB.
A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?
A) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. B) Each firm produces up to the point where all scale economies are exhausted. C) Production occurs at the lowest average total cost. D) Firms use an input combination that minimizes cost and maximizes output.
Refer to the diagram where curves (a) through (e) are for five different countries. Of the countries listed below, income is most unequally distributed in country:
A. a.
B. b.
C. c.
D. d.