If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then
A) the government could set price equal to marginal cost and subsidize the monopoly.
B) the government should not offer a subsidy, since the monopoly can make a profit setting price equal to marginal costs.
C) if the government sets price equal to average cost, the monopoly will go out of business.
D) the government cannot regulate price.
A
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After increasing at more than 2 percent per year between 1950 and 1973, the growth rate of average labor productivity ________ between 1973 and 1995, and ________ between 1996 to 2007.
A. speeded up; accelerated even more B. slowed; decreased even more C. slowed; picked up D. speeded up; slowed
What are some of the likely consequences of price ceilings on agricultural inputs?
What will be an ideal response?
The effects of a per-unit tax imposed on sales of an industry's product would likely include
A) a lower product price at any amount of the product supplied. B) a leftward shift of the market supply curve for the product. C) a leftward movement along the market supply curve for the product. D) none of the above.
Which situation is consistent with the law of diminishing marginal utility?
A. The more pizza Joe eats, the more he enjoys an additional slice B. The more pizza Joe eats, the less he enjoys an additional slice C. Joe's marginal utility from eating pizza becomes positive after eating three slices D. Joe's marginal utility from eating pizza reaches a maximum when total utility is zero