Refer to Figure 16-5. Suppose the firm represented in the diagram decides to act as a monopolist and charge a single price. What is the profit maximizing quantity produced and what is the price charged?
A) Q = 480 units; P = $16 B) Q = 240 units; P = $28
C) Q = 560 units; P = $12 D) Q = 320 units; P = $24
D
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Assume a monopolist regularly posts price increases three months in advance of when they will take effect. After a small number of new firms enter the market, the original firm continues the practice of announcing price increases in advance
Following the court's logic in the Ethyl case, the firms in this market would not be guilty of price fixing behavior. Indicate whether the statement is true or false
A perfectly competitive firm sells its output for $100 per unit and marginal cost is $100 per unit. To maximize short-run profit, the firm should:
a. increase output. b. decrease output. c. maintain its current output. d. shut down.
Which of the following is true with respect to the price elasticity of demand?
a. The coefficient of price elasticity of demand will change with changes in the units of measurement (for instance, going from pounds to ounces). b. Elasticity of demand is equal to the slope of the demand curve. c. Elasticity measures the sensitivity of total expenditure to a change in price of a good. d. Elasticity will tend to be greater for a relatively expensive product than for a cheaper one. e. A coefficient of 1 means that the percentage change in total expenditure is equivalent to the percentage change in price.
A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of
A. regression towards the mean. B. averaging. C. the money supply. D. compounding.