An unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. If the company has zero marginal costs, its profit-maximizing price is
a. 0
b. 1
c. 2.5
d. 5
c
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________ are inducements to act in certain ways
Fill in the blank(s) with correct word
In a perfectly competitive market, an increase in output could be caused by
a. decrease in consumer demand b. an unavoidable increase in fixed costs c. higher input prices d. an increase in consumer demand
Under a gold standard, if the market price of gold is below the official price of gold (set by the monetary authority), people will be more likely to sell gold __________________, which will cause the money supply to _______________ and the price level.to _______________
A) to the monetary authority; fall; fall B) to the monetary authority; rise; rise C) in the gold market; fall; fall D) in the gold market; rise; rise
If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:
A. help the United States and hurt the other countries because the United States has a larger population. B. help all of the countries involved because every country would have a comparative advantage in the production of some goods. C. hurt all of the countries involved because all the countries are capable of producing anything that could be produced in one of the other countries. D. help the United States and hurt the other countries because the United States has more natural resources than the other countries.