A single-price monopolist is producing 500 units of output. At that level, price is $200, and average total cost is $150 . In addition, both marginal cost and marginal revenue equal $120 . Which of the following statements is correct in the short run?
a. The firm has total costs of $60,000.
b. The firm could increase its profit by increasing output.
c. The firm has a profit per unit of $50.
d. The firm is suffering an economic loss of $15,000.
e. The firm is earning an economic profit of $40,000.
C
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In an exchange economy:
A. people produce goods, but do not own or trade them. B. people own and trade goods, but no production takes place. C. people produce, own and trade goods. D. people trade goods, but do not own them or produce them.
Which one of these statements is correct?
What will be an ideal response?
If an economy is operating at potential output:
A. any surplus would be a structural surplus. B. a budget surplus is impossible. C. the budget must be in surplus. D. any surplus would be a cyclical surplus.
If the aggregate demand curve shifts rightward, then _____
a. the price level increases and output decreases b. the resulting increase in the price level is usually called cost-push inflation c. the resulting increase in the price level is usually called demand-pull inflation d. the price level increases as long as the aggregate supply curve shifts leftward e. the price level decreases and output decreases