The following table shows a monopolist’s demand curve and cost information for producing its good. What price will the monopolist charge?
a. $25
b. $30
c. $20
d. $35
a. $25
The monopolist will charge $25.
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The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?
A) Firms' surplus increases with the minimum wage. B) Workers who retain their jobs have their wages rise. C) The market is efficient. D) The quantity supplied of workers is less that quantity demanded. E) Unemployment decreases because firms employ their workers more carefully.
An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____
a. pay a lower wage rate to labor b. increase truck production c. hire more workers d. increase capital used in production e. increase land used in production
According to John Maynard Keynes, policy makers should respond to a downturn in the business cycle by:
A. Cutting taxes and increasing government spending. B. Cutting taxes and reducing government spending. C. Raising taxes and increasing government spending D. Raising taxes and reducing government spending E. Do nothing because government activism violates Keynes' laissez faire approach.
Because of the multiplier, a one-time change in expenditure will...
a) have little secondary effect on real GDP b) expand real GDP by an infinite amount c) generate more additional real GDP than the initial change in expenditure d) decrease saving and investment activity and thereby decrease future real GDP