In order to sell one additional unit of output, a profit-maximizing monopolist must:
A.) Increase the size of its factory.
B.) Reduce marginal cost.
C.) Increase marginal revenue.
D.) Reduce the price of all units sold.
D.) Reduce the price of all units sold.
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What is the difference between diminishing marginal returns and diseconomies of scale?
What will be an ideal response?
An important type of information asymmetry is:
A. adverse selection. B. ethical constraint. C. advantage imbalance. D. information hazard.
An increase in the quantity of loanable funds traded means that
a. firms are borrowing less and investment decreases. b. firms are borrowing less and investment increases. c. firms are borrowing more and investment increases. d. firms are borrowing more and investment decreases.
The fact that some people will work hard to earn a lot of money while others will be content with much less income indicates that
a. worker preferences are an important source of earning differentials. b. skill levels of laborers are a minor consideration in wage rate determination. c. economics ranks one set of worker preferences as more desirable than another. d. some people can be paid less for doing hard work while others have to be paid a premium for doing a similar task.