In the above figure, what would be the profit or loss at the marginal cost pricing point for this natural monopolist?
A. -$1,200
B. $2,100
C. -$300
D. $2,700
Answer: A
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To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the
A) decrease in the quantity of the other item. B) increase in the quantity of the other item obtained. C) price of the item obtained. D) price of the item forgone. E) price of the item obtained and then multiply by the price of the item forgone.
Using an equation, explain why governments prefer to avoid excessive current account surpluses?
What will be an ideal response?
Regulating firms so that they always receive a guaranteed profit rate will lead to greatest efficiency.
Answer the following statement true (T) or false (F)
If capital is specific to manufacturing and land is specific to agriculture, then migration of labor from lowincome to highincome countries will cause:
a. the wage to rise in the highincome country and the wage to fall in the lowincome country. b. the wage to fall in the highincome country and the wage to rise in the lowincome country. c. the wage to rise in both the highincome and low income countries. d. the wage to fall in both the highincome and low income countries.