If pizza used to be produced in a perfectly competitive market, and now the pizza market has become a monopoly, we can expect:
A. less pizza to be sold at a higher price.
B. more pizza to be sold at a higher price.
C. less pizza to be sold at a lower price.
D. more pizza to be sold at a lower price.
Answer: A
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Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then the maximum value of the loans it makes is
a. $0 b. $90 c. $100 d. $900 e. $910
Can economic competition be viewed as a positive force for growth and progress?
A. Yes, because economic competition of any type always leads to growth and progress. B. No, because economic competition historically had neither a positive nor a negative effect. C. Yes, as long as it is conducted within a fair set of rules. D. No, because there is more poverty today than in the past.
Generally speaking, the inclusion of transportation costs in the total costs of production has the effect of causing the LRAC curve to:
A) shift down. B) flatten out. C) shift up. D) become steeper over the range on economies of scale.
Marginal revenue product is defined as the amount that an additional unit of the variable input adds to ____
a. marginal revenue b. total output c. total revenue d. marginal product e. none of the above