A monopolist maximizes profits by
a. producing an output level where marginal revenue equals marginal cost.
b. charging a price that is greater than marginal revenue.
c. earning a profit of (P - MC) x Q.
d. Both a and b are correct.
d
You might also like to view...
The money multiplier is used to determine how much the
A) quantity of money increases when the monetary base increases. B) monetary base increases when the quantity of money increases. C) monetary base increases when the Fed purchases government securities. D) monetary base increases when the Fed sells government securities. E) quantity of money increases when the required reserve ratio increases.
Economic variables we are most interested in are
a. real variables, but we usually observe nominal variables. b. nominal variables, but we usually observe real variables. c. real variables, which we usually observe. d. nominal variables, which we usually observe.
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
As soon as you see the other island's PPC, you realize there are:
A. no gains from trade because there is no difference in your ability to harvest coconuts. B. gains from trade because your island has a comparative advantage in coconuts. C. no gains from trade because you both have the same comparative advantage. D. no gains from trade because the other island has an absolute advantage.
Which of the following are the elements generally found in an inflation gap?
a. producing beyond normal capacity; high unemployment, high wages; low prices b. producing beyond normal capacity; low unemployment, high wages; high prices c. producing below normal capacity; high unemployment, high wages; high prices d. producing below normal capacity; low unemployment, low wages; high prices