A major difference between a monopolist and a perfectly competitive firm is that
A) the monopolist is certain to earn economic profits.
B) the monopolist's marginal revenue curve lies below its demand curve.
C) the monopolist engages in marginal cost pricing.
D) the monopolist charges the highest possible price that he can.
Answer: B
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Refer to Table 2-5. Estonia has a comparative advantage in the production of
A) neither product. B) lumber. C) cell phones. D) both products.
The real business cycle theory and the new classical theory agree that
a. business cycles are driven by changes in aggregate demand. b. expectations are formed rationally. c. imperfect information plays a big role in business cycles. d. none of the above.
Many college football teams require a "donation" in order to purchase season tickets. This is an example of
A) price gouging. B) tie-in sale. C) two-part pricing. D) anti-competitive behavior.
Unemployment occurs when someone:
A. is not working full-time. B. wants to work but cannot find a job. C. should be working but chooses not to. D. has useful skills that are not being used.