A profit-maximizing monopolist sets
A. his or her price where MC = MR.
B. his or her output where MC = MR.
C. his or her price where MR > MC.
D. his or her output where P = MC.
Answer: B
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Since 1960, the price of medical care in the United States has
A) decreased slightly. B) remained relatively unchanged. C) increased 8-fold. D) increased 19-fold.
Ann's money income is $250, the price of X is $3, and the price of Y is $2. Given these prices and income, Ann buys 60 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J Ann's MRS is 2. Given these prices and income, what is Ann's equilibrium consumption of X?
A. X = 60 B. X < 60 C. X > 60 D. None of the statements is correct.
If the federal budget deficit is falling, the national debt will
A. be rising at an increasing rate. B. be rising at a decreasing rate. C. remain at the same level. D. be falling at an increasing rate.
The exiting of firms from a perfectly competitive industry occurs when
A) opportunity costs cannot be covered. B) P = ATC. C) accounting profit is less than economic profit. D) MR equals MC.