How does the monopolist calculate profit per unit and total profit?
What will be an ideal response?
A monopolist computes profit per unit by comparing price at the profit-maximizing level of output and average cost. The difference is the profit per unit. Total profit is profit per unit multiplied by the total number of units, which the monopolist sells.
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Real variables can only be affected by:
a. unperceived changes in the price level. b. expected changes in the price level. c. perceived changes in the price level. d. actual changes in the price level.
________ are not a barrier to entry.
A. Patents B. Consent decrees C. Economies of scale D. Government franchises
Recall the text's discussion of the ten largest U.S. industries by value added in 1860 and 1910 . The emergence of tobacco products and malt liquors as major industries by 1910 suggests that
a. these goods are highly income elastic. b. these goods are highly income inelastic. c. these goods are price inelastic. d. these goods exhibit economies of scale in production.
Suppose a country has many of its citizens temporarily working in other countries, and many of its firms have facilities in other countries. Furthermore, relatively few citizens of foreign countries are working in this country, and relatively few foreign firms have facilities in this country. In these circumstances, which would you expect to be larger for this country, GDP of GNP?
What will be an ideal response?