According to the graph shown, if Q2 units are being produced, this monopolist:
This graph shows the cost and revenue curves faced by a monopoly.
A. is earning negative economic profits.
B. is earning positive economic profits.
C. is earning zero economic profits.
D. may be earning zero accounting profits.
B. is earning positive economic profits.
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Sue's Surfboards is the sole renter of surfboards on Big Wave Island. Sues demand and marginal revenue curves are illustrated in the figure above. Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is
A) $300. B) $225. C) $150. D) $10.
In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to
A) the declining marginal product of labor. B) the declining marginal product of capital. C) limits in the ability of government policymakers. D) too little savings.
________ is the notion that there is a limit to the information that an economic agent, such as a manager, can comprehend and act on
a. Core competency b. Outsourcing c. Economies of scope d. Bounded rationality
If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is
a. 1. b. 2. c. 3. d. None of the above is correct.