Which of the following is INCORRECT regarding monopoly and profits?
A. The mere existence of a monopoly does not guarantee high profits.
B. A monopolist will never experience economic losses.
C. The monopolist reaches profit-maximizing output by trial and error.
D. Numerous monopolies have gone bankrupt.
Answer: B
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What is the relationship between the aggregate planned expenditure curve and the aggregate demand curve? Explain the relationshi
What will be an ideal response?
In the above figure, if the quantity is equal to 1,500,000 units, the deadweight is equal to
A) area A + area B. B) area C. C) area B + area F. D) area G + area H. E) None of the above answers is correct because the deadweight loss is equal to zero.
A tradeoff exists between a clean environment and a higher level of income in that
a. studies show that individuals with higher levels of income pollute less than low-income individuals. b. efforts to reduce pollution typically are not completely successful. c. laws that reduce pollution raise costs of production and reduce incomes. d. employing individuals to clean up pollution causes increases in employment and income.
Among the two most important methods economists use to identify illegal discrimination are
A. "regression" techniques and "audit" methods. B. "audit" methods. C. "regression" techniques. D. lottery number analysis.