A pure monopolist:
A. will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing
level of output.
B. will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing
level of output.
C. will realize an economic loss if MC intersects the downsloping portion of MR.
D. always realizes an economic profit.
Answer: A
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Some individuals seek to use government action to make themselves better off at the expense of others. The actions of these individuals
A) are evidence of the voting paradox. B) are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance. C) offer proof that Adam Smith's "invisible hand" is not valid. D) are examples of rent seeking.
To say that the forward market lacks liquidity means that
A) forward contracts usually result in losses. B) forward contracts cannot be turned into cash. C) it may be difficult to make the transaction. D) forward contracts cannot be sold for cash.
In the long run, a monopolistically competitive firm will produce too little output to minimize average cost. Therefore, it will have
a. positive economic profit b. negative economic profit c. excess profit d. X-inefficiency e. excess capacity
Who can vote on Federal Open Market Committee decisions?
a. all of the members of the Board of Governors and all of the Federal Reserve Bank presidents b. all of the members of the Board of Governors and some of the Federal Reserve Bank presidents c. some of the members of the Board of Governors and all of the Federal Reserve Bank presidents d. some of the members of the Board of Governors and some of the Federal Reserve Bank presidents