Refer to the graph below for a monopolist in short-run equilibrium. This monopolist:
A. Has a loss per unit equal to DE
B. Has total fixed costs equal to area BEFC
C. Earns positive economic profit equal to the area of ABED
D. Will cease production since its economic profits are negative
A. Has a loss per unit equal to DE
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The basic transfer is defined as
(a) net capital inflow. (b) interest payments on foreign debt. (c) net capital inflow divided by interest payments on foreign debt. (d) net capital inflow minus interest payments on foreign debt.
When costs are uncertain, a government might use a _____ contract, where the government pays the cost of the project plus an additional amount
a. fixed fee b. cost plus fixed fee c. cost plus percentage fee d. cost plus incentive fee
When a variable is determined by a factor inside of the function or model being evaluated, it is said to be
A) endogenous. B) exogenous. C) unexplained. D) statistically insignificant.
Insurers try to minimize moral hazard by
a. only selling policies to individuals with high ethical standards. b. requiring advance payments of premiums. c. charging higher premiums to individuals than to groups. d. charging deductibles and coinsurance. e. refusing to sell insurance to individuals with chronic illnesses.