If government regulators want a natural monopolist to earn only zero economic profit, they will set price equal to:
A. average total cost (ATC).
B. marginal cost (MC).
C. average fixed cost (AFC).
D. average variable cost (AVC).
Answer: A
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An option that can only be exercised at maturity is called
A) a swap. B) a stock option. C) an European option. D) an American option.
The statistical details on the U.S. balance of international payments between 1790 and 1860 help economic historians determine
(a) what the U.S. sold domestically. (b) how other countries paid for their own domestic goods and services. (c) how the U.S. paid other countries for their exports. (d) changes in domestic trade patterns.
Total global Gross Domestic Product (GDP) when it is calculated at official, nominal exchange rates is approximately trillion dollars.
To say that isoquants are convex is to say that
A) the marginal rate of technical substitution falls as labor increases. B) capital and labor are perfect substitutes. C) labor, but not capital, is subject to the law of diminishing marginal returns. D) there are constant returns to scale.