Refer to the figure above. If the monopolist faces a constant marginal cost of $10, at what price should it sell its output?
A) $2
B) $10
C) $12
D) $14
D
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Refer to Figure 16-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) decrease government purchases B) increase income taxes C) sell Treasury bills D) increase government purchases
Which of the following is a necessary condition for successful price discrimination?
A) The seller must possess market power. B) Transactions costs must be zero. C) The buyer must possess market power. D) Buyers must have identical inelastic demands.
The combination of two goods at which total utility is maximized must lie somewhere on the consumer's budget line
a. True b. False
A headline reads: "Economy Still in Recession." The type of unemployment most closely associated with this economic condition would be:
A. structural. B. frictional. C. search. D. cyclical.