The demand curve faced by a pure monopolist:
A. may be either more or less elastic than that faced by a single purely competitive firm.
B. is less elastic than that faced by a single purely competitive firm.
C. has the same elasticity as that faced by a single purely competitive firm.
D. is more elastic than that faced by a single purely competitive firm.
Answer: B. is less elastic than that faced by a single purely competitive firm.
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The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The total benefit of a 3.0GHz computer is:
A. $900. B. $300. C. $1,700. D. $1,650.
Since the mid-1980s tariff rates in most nations have risen
Indicate whether the statement is true or false
To maximize joint profits, a cartel must determine the level of output at which:
A) joint marginal revenue equals the marginal cost of the largest member of the cartel. B) marginal revenue equals joint marginal cost. C) the horizontally sum of the members marginal cost curves is at a minimum. D) joint marginal revenue equals the marginal cost of the smallest member of the cartel.
Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.
Figure 34.4Refer to Figure 34.4. The demand and supply of pounds are D1 and S1. If the demand shifts to D2 and supply remains unchanged at S1
A. the dollar appreciates and the equilibrium quantity of pounds increases. B. the dollar depreciates and the equilibrium quantity of pounds decreases. C. the dollar depreciates and the equilibrium quantity of pounds increases. D. the dollar appreciates and the equilibrium quantity of pounds decreases.