When a monopolist's marginal profit is negative, then it follows that
A. MR = MC.
B. MR > MC.
C. MR < MC.
D. MR > ATC.
Answer: C
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Refer to Figure 18-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be
A) an increase in U.S. real income. B) an economic expansion in the United States. C) speculators expect the dollar to depreciate in value in the near future. D) a decrease in Japanese interest rates.
All else equal, the ________ the coupon rate on a bond, the ________ the bond's duration
A) higher; longer B) higher; shorter C) lower; shorter D) greater; longer
The opportunity costs associated with the use of resources owned by a firm are:
a. externalities. b. implicit costs. c. explicit costs. d. sunk costs.
Refer to the accompanying figure. The equilibrium price in this market is ________ and the equilibrium quantity is ________.
A. $25; 25 B. $30; 25 C. $25; 30 D. $30; 30