"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is partially correct because a monopoly charges a higher price than is the case in a perfectly competitive industry. However the statement also is partially incorrect because the monopoly produces less output than is the case in a perfectly competitive industry.
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A welder who quits his job and moves from Houston to Buffalo to try to get a better welding job is said to be:
a. frictionally unemployed. b. underemployed c. cyclically unemployed. d. structurally unemployed.
Suppose 30 employees per day can produce 50 units of output. Assuming the law of diminishing marginal returns is present, to produce 100 units of output would require:
A. a total of 60 or fewer employees per day. B. fewer than 30 additional employees per day. C. more than 30 additional employees per day. D. an additional 30 employees per day.
With a home monopolist, the imposition of a tariff results in:
a. a higher deadweight loss than a quota. b. a higher price for consumers than a quota. c. a lower deadweight loss than a quota. d. the same welfare effects as a quota.
If you can download 10 ring tones for your cell phone for $10 or you can download 11 ring tones for your cell phone for $10.50, then the marginal cost of the eleventh ring tone is
A. $0.50. B. $10.00. C. $10.50. D. $20.50.