If a firm has a monopoly in both the production and distribution of a product and the managers of both the production and distribution divisions maximize profits, all of the following are true except which one?
A) A successive monopoly will occur within the firm.
B) The firm will maximize its total profit.
C) The manager of one of the divisions should be instructed to maximize profit and the manager of the other division should be instructed to operate as a perfectly competitive firm.
D) Double marginalization will occur within the firm.
B) The firm will maximize its total profit.
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Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced. This would
A) shift the marginal cost curve up. B) shift the marginal cost curve down. C) shift the average fixed cost curve up. D) shift the average fixed cost curve down.
In order to sell more of its product, a monopolist must
a. lobby the government for a subsidy. b. lower its price. c. advertise. d. enact barriers to entry in related markets.
Which of the following explains why public employees (more frequently than private employees) tend be in defined benefit programs?
A. They tend to begin and end their career with the same employer. B. They tend to fall for Ponzi schemes. C. They tend to move from employer to employer. D. They have well-funded private savings plans.
Refer to the information provided in Table 30.1 below to answer the question(s) that follow.
Table 30.1
Refer to Table 30.1. What is the real wage rate in 2016 using 2015 as the base year?
A. $9.28 B. $9.58 C. $17.64 D. $19.00