Can a monopolist that can charge only one price maximize its profit at a quantity that is equal to the quantity produced if the industry were perfectly competitive?
A. No. Never.
B. Yes, if the fixed costs are zero.
C. Yes, if the marginal costs are zero.
D. Yes, if the total costs are zero.
Answer: A
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If you sold a short contract on financial futures you hope interest rates
A) rise. B) fall. C) are stable. D) fluctuate.
Without usury laws, banks will
A) charge very high interest rates to all borrowers. B) charge higher interest rates to riskier borrowers than to safer borrowers. C) charge very low interest rates to all borrowers. D) face no demand for loans.
As a result of moving more decision making from the center toward the periphery of the organization, typically
a. the flow of relevant information to the decision maker should be enhanced b. the flow of relevant information from the decision maker should be enhanced c. the incentives to make good decisions should be strengthened d. the incentives to make good decisions should be weakened
As price falls, quantity supplied ___________.
Fill in the blank(s) with the appropriate word(s).