Refer to the graphs shown.
The maximum profits that a lazy monopolist whose average total costs are given by the ATC (X-inefficient) curve but who still produces the profit-maximizing quantity might earn is best shown by the area:
A. C + D in graph (2).
B. C in graph (2).
C. A+ B in graph (1).
D. A in graph (1).
Answer: D
You might also like to view...
The primary goal of a business firm is to
A) promote fairness. B) make a quality product. C) promote workforce job satisfaction. D) maximize profit. E) increase its production.
Most app developers have adopted the business model of
A) charging a between $1.99 and $2.99 for their apps to be downloaded. B) allowing their apps to be downloaded and used for free, while trying to still earn money from users. C) charging a small fee for their apps to be downloaded. D) allowing their apps to be downloaded to one device for free, but charging a high price for the apps to be downloaded to additional devices.
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls and aggregate supply rises. d. Aggregate demand rises and aggregate supply rises. e. Aggregate demand falls and aggregate supply falls.
Refer to the following payoff matrix:Player 1Player 2??ab?A$50,$5$25,$30?B$40,$2$20,$1Suppose the simultaneous-move game depicted in this payoff matrix could be turned into a sequential-move game with player 1 moving first. In this case, the equilibrium payoffs will be:
A. ($25, $30). B. ($20, $1). C. ($40, $2). D. ($50, $5).