The deadweight loss associated with a monopoly occurs because the monopolist
a. maximizes profits.
b. produces an output level less than the socially optimal level.
c. produces an output level greater than the socially optimal level.
d. equates marginal revenue with marginal cost.
b
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The marginal product of labor is the change in
A) total cost from employing one more worker. B) total revenue from employing one more worker. C) average product from employing one more worker. D) total output from employing one more worker. E) total output divided by the change in cost from employing one more worker.
Which of the following is considered an advantage of a sole proprietorship?
A) easy to raise large sums of capital B) limited liability for owner C) profit taxed only once D) permits effective specialization
Suppose you have a choice between studying one more hour for your history exam or studying one more hour for your psychology exam. Your decision on what to study should be based on:
a) the additional benefits of studying for each class. b) which class you like the most. c) how much time you have already studied for each class. d) your current average scores in each class.
All of the following are arguments in support of protectionist legislation except:
A. increasing global trade. B. supporting infant industries. C. preserving domestic employment. D. promoting national security.