Assume that a monopoly is producing at a profit-maximizing output level. If the firm's total fixed costs decrease, the firm
A) should lower its price.
B) should increase its price.
C) should continue to produce at the same level.
D) increase its output level.
Answer: C
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In the above figure, the total consumer surplus at the efficient level of output is ________
A) $4.5 million B) $9.0 million C) $2.5 million D) $8.5 million
Suppose the government taxes 25 percent of the first $60,000 of income and 40 percent of all income above $60,000 . For a person earning $200,000 . the marginal tax rate is
a. 25 percent, and the average tax rate is 32.5 percent. b. 25 percent, and the average tax rate is 36 percent. c. 40 percent, and the average tax rate is 32.5 percent. d. 40 percent, and the average tax rate is 36 percent.
An individual who desires the most liquid asset possible will hold
A. U.S. government bonds. B. currency. C. a savings account. D. checkable deposits at a bank.
If the four-firm concentration ratio for an industry is 84 percent, then
A. the four largest firms in the industry account for 16 percent of the total sales. B. the four largest firms in the industry account for 84 percent of the total sales. C. the remaining firms in the industry accounts for 84 percent of the total sales. D. each of the firms account for 21 percent of total sales.