A monopoly results in productive inefficiency because at the profit-maximizing output level:
A. MR is not zero
B. ATC is not at its minimum level
C. MC is not at its minimum level
D. P > AVC
B. ATC is not at its minimum level
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The average price of goods and services in the economy is also known as
A) the cost of living. B) the inflation rate. C) a market basket. D) the price level.
State some of the policies adopted by the U.S. government to check petroleum prices
If Alexander has a positive rate of time preference, he will
a. prefer to have goods now rather than two years from now. b. prefer to have goods two years from now rather than during the current period. c. prefer apples to oranges. d. be unwilling to pay an interest rate in order to acquire purchasing power now.
A decrease in the supply of an agricultural product will increase the total revenue of farmers if the demand for the agricultural product is
A) income elastic. B) income inelastic. C) price elastic. D) price inelastic. E) none of the above