A monopolist is producing at an output level at which ATC = $55 P = $65, MC = $45, and MR = $35. We can conclude that
A. economic profit cannot be increased.
B. economic profit could be increased by producing less.
C. economic profit could be increased by producing more.
D. the firm is earning $10 in economic profits.
Answer: B
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Assuming all else equal, if a firm decides to pay more dividends and lowers the amount of retained earnings it holds, it will cause:
A) an upward movement along the current credit supply curve of the firm. B) a downward movement along the current credit supply curve of the firm. C) the current credit supply curve of the firm to shift to the left. D) the current credit supply curve of the firm to shift to the right.
If equilibrium is present in a market,
a. the price of the product will tend to rise. b. quantity demanded equals quantity supplied. c. quantity demanded exceeds quantity supplied. d. quantity supplied exceeds quantity demanded.
Describe the law of diminishing marginal utility. On what assumptions is this law based?
Please provide the best answer for the statement.
Answer the question on the basis of the following demand schedule. Price Quantity Demanded $6 1 $5 2 $4 3 $3 4 $2 5 $1 6 Which of the following is correct?
A. Although the slope of the demand curve is constant, price elasticity increases as we move from high to low price ranges. B. Although the demand curve is convex to the origin, price elasticity of demand is constant throughout. C. Although the slope of the demand curve is constant, price elasticity declines as we move from high to low price ranges. D. A steep slope means demand is inelastic; a flat slope means demand is elastic.