Why are modern coins not made of precious metals?
What will be an ideal response?
If a quarter, for example, were made of platinum instead of a more common metal, its value would be more than the 25 cents it is officially posted to be worth. People would then have the incentive to accumulate quarters and melt them down and sell them as platinum for a profit, instead of using them as money. Quarters would then disappear from circulation. This is the reason why coins are not made from precious metals.
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A monopolist's short-run supply curve is
a. its average fixed cost curve b. the part of the marginal cost curve above the average variable cost curve c. the part of the marginal cost curve below the average variable cost curve d. nonexistent e. its demand curve
Which of the following is not associated with the monopoly market structure?
A. many sellers B. a single seller C. a unique product D. impossible entry into the market
The marginal principle ________ to the determination of the efficient level of pollution abatement because ________.
A. applies; there are tradeoffs in terms of the costs and benefits of pollution abatement B. applies; pollution abatement causes greater harm than benefits C. does not apply; it is immoral to trade a dirtier environment for material wealth D. does not apply; the costs and benefits of pollution abatement cannot be measured
Refer to the information provided in Table 14.1 below to answer the question that follows. Table 14.1B's Strategy ?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. Firm A does not have a dominant strategy.
Answer the following statement true (T) or false (F)