If a monopolist has zero marginal costs, it will produce
a. in the range in which marginal revenue is increasing.
b. the output at which total revenue is maximized
c. at the point at which marginal revenue is zero.
d. Both (b) and (c).
d
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A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, what's his opportunity cost as an opera star?
A) $2.0 million B) $100,000 C) $1.9 million D) $2.1 million
Suppose Bev's Bags makes large handbags and small handbags. They sold 70,000 large bags for $45 each and 25,000 small bags for $15 each. What was the total revenue for this company?
A. $3,150,000 B. $375,000 C. $3,525,000 D. $2,850,000
It is very important to distinguish between the short run and the long run when we are discussing
a) the aggregate demand b) the aggregate expenditures c) the aggregate supply d) changes in the price level e) all of the above
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. The ________ haircut is $16.
A. average total cost of a B. marginal cost of a C. profit-maximizing price for a D. profit from each