Which of the following is TRUE for a profit maximizing monopolist?
A) Marginal cost is always less than average total cost.
B) In the long run, the firm's economic profit equals zero.
C) In the short run, the firm will shut down if its marginal cost is less than its average variable cost.
D) In the short run, the firm can make an economic profit even if its marginal cost is less than its average variable cost.
D
You might also like to view...
Much of macroeconomics is concerned with advising governments on ways to ________ business cycles, since it is desirable to ________
A) amplify, create the greatest cyclical peaks possible B) amplify, create deep recessions to cool down the economy C) dampen, avoid both very low troughs and very high peaks D) dampen, keep the economy at its maximum productive capacity
Define the following terms and explain their importance to the study of macroeconomics:
a. structural budget deficit b. monetize the deficit c. crowding out d. inflation accounting e. mix of fiscal and monetary policy
A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings but leaves half of a fifth helping uneaten. Why?
What will be an ideal response?
According to the cumulative investment table above:
A. $150 billion worth of investments have expected rates of return exactly equal to 20%
B. $150 billion worth of investments have expected rates of return of 20% or lower
C. $40 billion worth of investments have expected rates of return between 20% and 22%
D. $260 billion worth of investments have expected rates of return higher than 20%