In Figure 8.4, the difference between total costs and variable cost is:
A. average total cost.
B. fixed cost.
C. total costs are positive when output is zero implying fixed costs.
D. All of these.
Answer: B
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Relative to a single price monopolist, a price discriminating monopolist generates:
A. more total surplus. B. the same amount of total surplus, but higher profits. C. less total surplus. D. the same amount of total surplus, but lower profits.
Poverty
What will be an ideal response?
The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market purchase of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) fall to 4 percent a year.
B) remain at 6 percent a year.
C) rise to 8 percent a year.
D) change, but more information is needed to determine by how much.
E) None of the above answers is correct.
Before his death in 2011, Steve Jobs made billions of dollars as a tremendously successful:
A. Inventor of new stuff B. Entrepreneur and innovator C. Manager of a large corporation D. Investor in various corporate stocks