How does the monopolist calculate profit per unit, and total profit?
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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Refer to the table above. If Beth earns $60,000 per annum, she has to pay a tax of ________
A) $9,464.50 B) $1,600.50 C) $1,000.50 D) $24,000
In the long run, the perfectly competitive firm
A) does not have a shut down price. B) earns only a normal profit. C) may produce even if it suffers a loss. D) earns an economic profit.
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type B individual contribute in total? a. 1875 b. 1500 c. 875 d. 625
A simultaneous $10 million increase in both taxes and government spending will have no net effect on aggregate demand
a. True b. False Indicate whether the statement is true or false