Refer to the graph shown. The areas that represent the net gain to society of eliminating the monopoly are:
A. A and B.
B. A and C.
C. D and B.
D. D and C.
Answer: C
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The high price of agricultural land is basically
A) the cause of high food prices. B) the result of high food prices. C) unrelated to food prices because processing costs dominate food prices. D) unrelated to food prices because there is no opportunity cost of producing land.
When a firm sells a given product at more than one price and the price difference is NOT caused by differences in cost then there is
A. price delineation. B. price discrimination. C. price demarcation. D. price differentiation.
Refer to Table 13-2. What is the output (Q) that maximizes profit and what is the price (P) charged?
A) P = $55; Q = 5 cases B) P = $50; Q = 6 cases C) P = $45; Q = 7 cases D) P = $40; Q = 8 cases
If a business is losing money in the short run, the owner will try to minimize
A. losses per unit of output. B. total cost. C. total losses. D. output.