Suppose a monopolist's demand curve is P = 60 - Q, its cost function is TC = 10Q + 50, and its marginal cost is 10. If a governmental agency wished to set the price so that it created the smallest deadweight loss without causing the monopolist to have negative economic profits, this price would be
A) $10.00.
B) $11.02.
C) $14.57.
D) $35.00.
B
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Exhibit 30-2
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Which of the following world regions has received the largest percentage of lending from the World Bank since 1990?
A) Latin America/Caribbean B) South Asia C) Africa D) Middle East
If all U.S. government bonds are held by U.S. citizens, then:
a. the bondholders will not earn interest on the bonds. b. there is no tax liability for funding the U.S. government's debt. c. there is no net change in national wealth when the national debt changes. d. the tax liability for funding the debt is not offset by the interest earnings of bondholders. e. the tax rates are not increased to repay the outstanding debts.
One way the government could try to move people toward making choices with a socially desirable outcome would be to:
a. marginalize private benefits. b. require education on the topic. c. provide subsidies. d. legislate socially desirable options.