At the profit-maximizing level of production, a perfectly competitive industry will produce an _____ level of production, and a monopolist produces an _____ level of production.
a. efficient; inefficient
b. inefficient; efficient
c. inefficient; inefficient
d. efficient; efficient
a. efficient; inefficient
You might also like to view...
Define tax incidence
What will be an ideal response?
Assume that $1 equals 100 yen (¥). A Japanese visitor to the United States wants to pay her $400 hotel bill. How many yen should she exchange in order to have enough dollars to pay the bill?
A) ¥4 B) ¥40 C) ¥4,000 D) ¥40,000
Consider a two-country, two-commodity model. Each country has an increasing-cost production-possibility curve. In this model the amounts of the goods that are produced in a country in the no-trade situation are determined by:
A. the factor endowments in the economy. B. total income in the economy. C. the relative prices of the goods. D. technology differences between the industries.
A depreciation of the U.S. dollar relative to the euro would tend to
A. increase U.S. exports to Germany. B. increase both U.S. imports from Germany and U.S. exports to Germany. C. decrease U.S. exports to Germany. D. increase U.S. imports from Germany.