The marginal cost of a monopolist is constant and is $10. The marginal revenue curve is given as follows: MR = 100 - 2Q The profit maximizing price is
A) $70.
B) $65.
C) $60.
D) $55.
E) $50.
D
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Those who advocate a role for the World Bank in establishing systems of well-defined property and contract rights in developing nations would argue that
A) such changes would eliminate the need for short-term loans. B) such changes would make these economies more productive. C) such changes would eliminate the need for long-term capital funding. D) asymmetric information is currently not a problem in these countries.
The United States need never pay off the national debt; it can simply refinance the debt when it comes due. The flaw in thinking that the government must pay it off is based on the fallacy of
a. benefit-cost ratio. b. post hoc, ergo propter hoc. c. composition. d. a priori expectations.
Which of the following government functions most clearly prevents rent-seeking behavior from leading to a socially inefficient Nash equilibrium?
a) provision of national defense b) operation of Social Security c) provision of public education d) issuance of patents e) establishing municipal rent control on urban apartments
In the late 1990s, Brazil decided to reduce the value of its currency, the real, in order to boost exports and help the economy to move out of a recession. Argentina, the main trade competitor of Brazil in various products, was immediately affected by Brazil's decision, since it would:
A. decrease Argentina's imports and decrease Argentina's trade deficit. B. increase Argentina's exports and decrease Argentina's trade deficit. C. decrease Argentina's exports and increase Argentina's trade deficit. D. increase Argentina's imports and decrease Argentina's trade deficit.