The monopolist determines the price and quantity combination that maximizes short-run profits by
A) finding the quantity at which marginal cost and marginal revenue are equal and then using the demand curve to find price.
B) determining the price by finding the highest price at which sales can be made and then using the demand curve to find the appropriate quantity.
C) finding the point at which marginal revenue and demand intersect. This gives the price and quantity that maximizes profits.
D) finding the quantity at which average revenue and average total cost are furthest apart.
A
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Jerry wishes to retire in 5 years with $1 million in his bank account
If the account pays 4% and his current balance is $500,000, how much must he deposit at the beginning of each of the next five years for his wish to come true? The amount must be the same each year.
Which of the following does the production possibilities curve illustrate?
a. The tradeoffs facing a society b. The fact that more of one product can be produced only by reducing the quantity of other products that are being produced, assuming that resources are being used efficiently c. The maximum output that can be produced with a limited amount of resources d. The opportunity cost of alternative choices e. All of these
Which of the proposals for education reform is likely to be supported by an economist concerned with efficiency?
a. Give families "education stamps" to be spent at the school of their choice. b. Assign children to particular schools based on where they live. c. Give all schoolchildren the same number of years of education. d. Abolish private (i.e., fee-charging) schools.
If two consumption bundles lie on the same indifference curve, then:
A. the consumer prefers the bundle that is farthest from the origin. B. the consumer does not prefer one bundle over the other. C. the consumer prefers the bundle that is farthest to the right on the indifference curve. D. the consumer prefers the bundle that is farthest to the left on the indifference curve.