Which of the following is true for the monopolist?
a. Marginal revenue is less than the price charged.
b. Profit maximizing or loss minimizing occurs when marginal revenue equals marginal cost.
c. All of the answers are correct.
d. Economic profit is possible in the long run.
c
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If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a
A) store of value. B) medium of exchange. C) mechanism for transforming present purchases into future purchases. D) unit of account.
The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost
If the government assesses the marginal external cost correctly, what is the amount of the pollution tax that eliminates the inefficiency? A) $2 per pound B) $3 per pound C) $4 per pound D) $1 per pound E) None of the above answers is correct.
Both the classical and the HO model predict that the pattern of trade is determined largely by international differences in factor endowments
Indicate whether the statement is true or false
The value of marginal product curve is downward sloping because:
A. profits decline as more workers are hired. B. firms must lower price to sell more. C. of the law of diminishing returns. D. at lower wages, only less qualified workers are available.