Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, marginal revenue at the profit-maximizing level of output is
A. $300.00
B. $550.00
C. $150.00
D. $250.00
Answer: A
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If the firm hires security guards to enforce a lockout, what are they implying?
a. They would always accommodate b. They would always bargain hard c. They would not accommodate d. Both B&C
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results: 
Based on the above information, which of the following is correct at the 1% level of significance?
A. The estimates of the parameters a, b, and c are all statistically significant because the absolute values of their t-ratios exceed 2.797. B. The critical value of t is 2.797. C. The regression equation as a whole is statistically significant because the p-value of F is smaller than 0.01. D. The estimates of the parameters a, b, and c are all statistically significant because the p- values for, a? , b? and c? are all less than 0.01. E. all of the above
Exhibit 14-1 Private and social cost
The perfectly competitive profit-maximizing firm in Exhibit 14-1 creates water and air pollution as a consequence of producing its output of pigs. If pollution costs are borne by third parties, the firm will maximize economic profit by choosing to:
A. voluntarily incur costs to reduce its pollution. B. produce at output rate Q3. C. produce at output rate Q2. D. produce at output rate Q4.
In the early 1990s, Serbia, a developing country, experienced hyperinflation because its central bank increased the money supply too rapidly. Serbia's central bank most likely adopted this monetary policy because:
A. it didn't care about inflation. B. the Serbian government granted independence to the central bank. C. the Serbian government had no other way to finance its expenditures. D. it believed that its actions would not trigger inflation.