In the graph for changes in average costs, if a monopolist moves from ATC1 to ATC2, it will ______.
a. earn a very high rate of return
b. earn a very low rate of return
c. still earn a normal rate of return
d. be unable to stay in business
c. still earn a normal rate of return
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Contrary to Fogel and Engerman's (1974) claim, most surveyed economists believed that slavery was on the verge of extinction on the eve of the Civil War
Indicate whether the statement is true or false
Suppose a profit-maximizing monopoly is able to employ multimarket price discrimination. The marginal cost of providing the good is constant and the same in both markets
The marginal revenue the firm earns on the last unit sold in the market with the lower price will be A) greater than the marginal revenue the firm earns on the last unit sold in the market with the higher price. B) less than the marginal revenue the firm earns on the last unit sold in the market with the higher price. C) equal to the marginal revenue the firm earns on the last unit sold in the market with the higher price. D) greater than the marginal cost of the last unit.
The "crowding-out" debate refers to the disagreement between Keynesians and conservative economists about whether
A. spending for national defense causes reductions in the spending for social welfare. B. government contracts with suppliers of military weapons results in unfair competition with non-defense related industries. C. increased government borrowing has an adverse effect on private investment spending. D. restrictive monetary policy makes expansionary fiscal policy ineffective.
Figure 4-22
Refer to . The amount of the tax per unit is
a.
$1.00.
b.
$1.50.
c.
$2.50.
d.
$3.50.