In the above figure, suppose the monopolist is producing at Q3. The firm should
A. increase output and decrease price.
B. decrease output and increase price.
C. not change output or price.
D. shut down.
Answer: B
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In the above figure, what price will a single-price monopoly set?
A) P1 B) P2 C) P4 D) P5
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are shown in the table, which option would David like to see voted on first?
A. Library and computer lab
B. Computer lab and gym
C. Gym and library
D. It doesn’t matter which options are considered first.
Economists assume maximizing efficiency over other goals:
A. may not bring about the best outcome for society. B. is a guiding principle of policy-making. C. is always the best approach. D. should never be followed.
Figure 11-9
In Figure 11-9, how much more than the long-run competitive price will the profit-maximizing monopolist charge?
a.
$1
b.
$2
c.
$3
d.
$11