A monopolist that chooses price
A) necessarily produces less than a monopolist that chooses quantity, hence the laws against price fixing.
B) produces the same amount as a monopolist that chooses quantity.
C) produces more than a monopolist that chooses quantity, thus the irony of laws against price fixing.
D) could produce more or less than a monopolist that chooses quantity since the demand curve is not specified.
B
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Consumption goods
A) include spending on machines and buildings so that goods can be produced in the future. B) are goods that are used to make other goods. C) include goods such as DVDs that firms hold in inventory. D) are only the goods bought by households for immediate satisfaction.
The price elasticity of demand can range between
A) zero and one. B) negative infinity and infinity. C) zero and infinity. D) negative one and one.
Market equilibrium occurs where supply equals demand
Indicate whether the statement is true or false
The marginal cost of hiring the 4th worker is
a. $40 b. $100 c. $20 d. $0