A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 ? Q. The monopoly price is:
A. $10.
B. $20.
C. $40.
D. $30.
Answer: D
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Diminishing marginal returns to labor imply that
a. fixed costs will remain constant as the firm's output increases. b. the firm's short-run marginal cost curve will be upward sloping. c. the firm enjoys increasing returns to scale in the long run. d. the firm will be unable to earn short-run economic profit.
Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?
A) 8.99 percent B) 8.00 percent C) 9.41 percent D) 8.62 percent E) 9.12 percent
What is the source of the U.S. fiscal imbalance and what are the painful choices that we face?
What will be an ideal response?
If other things are constant, the longer the average unemployed worker searches before accepting a job
A) the lower will be the measured unemployment rate. B) the higher will be the measured unemployment rate. C) the lower will be the natural unemployment rate. D) none of the above.