A monopolist wishing to increase its profit has just discovered that lowering its price and selling more output yielded the desired result. Profit increased. Based on this, we can conclude that the cost of the additional production is
A) greater than the revenue from the additional production.
B) precisely equal to the revenue from the additional production.
C) less than the revenue from the additional production.
D) there is no way to answer this because you have not given us the marginal revenue and marginal cost data.
Answer: C
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Suppose two people with the same level of income and wealth have different discount rates. Joe has a very high discount rate and Jim has a very low discount rate. Which one of the following is TRUE?
A) Joe is more likely to borrow than Jim. B) Joe is less likely to borrow than Jim. C) Joe and Jim will borrow the same amount. D) Neither Joe nor Jim would be borrowers.
If top government officials claim that more people are working now than ever before, then which of the following is true? a. The unemployment rate is lower now than ever before
b. The number of people unemployed is lower now than ever before. c. The employment rate is higher now than ever before. d. The number of people in the labor force is higher now than ever before. e. The number of people employed is higher now than ever before.
A bank may hold secondary reserves, such as U.S. government securities because:
a. they pay higher interest rates than deposits at the Fed, and are easily converted into cash assets. b. they pay higher interest rates than deposits at the Fed, even though they are hard to convert assets. c. they pay lower interest rates than deposits at the Fed, but are more easily converted into cash assets. d. they pay lower interest rates than deposits at the Fed, and are hard to convert into cash assets.
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that
A) the dollar will appreciate and the peso will depreciate. B) both the dollar and the peso will appreciate, although the peso will appreciate before the dollar appreciates. C) the dollar will depreciate and the peso will appreciate. D) both the dollar and the peso will depreciate, although the peso will depreciate before the dollar depreciates. E) There is not enough information to answer the question.