A monopolistic competitor maximizes profit by producing 600 units of output at a price of $24 per unit. If the average cost of production is $18, the monopolistic competitor earns a profit of:
a. $3,600.
b. $2,400.
c. $6,000.
d. $1,800.
a
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Which economic concept is illustrated by the saying "You can't have your cake and eat it too"?
a. Private property rights b. Economic freedom c. Scarcity d. Opportunity cost e. Gains from trade
Which of the following factors would not shift the demand curve for loanable funds?
a. a decrease in the marginal physical product of capital b. an increase in the marginal physical product of capital c. a decrease in the price of the good produced by capital d. an increase in the price of the good produced by capital e. an increase in the interest rate
If large fixed costs result in ATC falling as output increases and this occurs over the relevant range of output, this industry is a:
A. natural monopoly. B. network externality. C. profit maximizer. D. constant-cost industry.
Which of the following goods is least likely to be in a market basket?
A. Streetlamps B. Airfare C. Coffee beans D. Shuttle service