Suppose a monopolist charges a price corresponding to the intersection of marginal cost and marginal revenue. If the price is between its average variable cost and average total cost curves, the firm will:
a. None of the answers are correct.
b. shut down.
c. earn an economic profit.
d. stay in operation in the short run, but shut down in the long run if demand remains the same.
d
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Compared to a single-price monopoly, the output of a perfectly competitive market with the same costs
A) is more than the monopoly's output. B) is the same as the monopoly's output. C) is less than the monopoly's output. D) could be more than, less than, or equal to the monopoly's output.
Which one of the following is not considered a financial intermediary?
A) a pension fund B) an insurance company C) a credit counselor D) a bank
If leisure is a normal good for a worker, and the income effect of a wage change dominates the substitution effect, then if wages increase:
a. there will be a decrease in the quantity of labor supplied by the worker. b. there will be an increase in the quantity of labor supplied by the worker. c. there will be no change in the quantity of labor supplied by the worker. d. the worker's individual supply curve will shift to the left.
Which of the following best describes how the U.S. Department of Labor treats discouraged workers in its calculations?
a. They are counted as unemployed members of the labor force. b. They are counted as unemployed but not as members of the labor force. c. They are not counted as unemployed but are counted as members of the labor force. d. They are not counted as unemployed or as members of the labor force.