A monopolist maximizes profits by finding
A) the rate of output where marginal revenue equals marginal cost.
B) the rate of output where price equals marginal cost.
C) the price where price exceeds marginal revenue by that largest amount.
D) the price where average revenue and marginal cost are equal.
Answer: A
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Suzie Homemaker works in her home as a full-time caretaker and homemaker. Officially, she is: a. employed
b. unemployed. c. not in the labor force. d. a discouraged worker.
What is the difference in the concepts of economic growth and economic expansion?
a. Both terms are used interchangeably and refer to quarterly increases in output. b. Economic growth refers to the long-tun upward trend in output over a longer period of time, usually more than a decade, which is measured as the average annual change in output over the period. An expansion refers to a shorter time period during which output increases quarter by quarter or year by year. c. An expansion refers to the long-tun upward trend in output over a longer period of time, usually more than a decade, which is measured as the average annual change in output over the period. Economic growth refers to a shorter time period during which output increases quarter by quarter or year by year. d. Both terms are used interchangeably and refer to the long-tun upward trend in output over a longer period of time, usually more than a decade, which is measured as the average annual change in output over the period. e. Economic growth is the term reserved for periods of prosperity in less developed countries while expansion is the term reserved for developed industrial countries.
Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, why is genetic testing causing adverse selection?
A. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get insurance. B. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insurance. C. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get hired by employers. D. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insured by insurance companies.
If a single supplier of labor, such as a union, were supplying labor to a single monopsonistic employer, this is referred to as a(n)
A) bilateral monopoly. B) trilateral monopoly. C) total monopsony. D) collective monopoly.