Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum
a. True
b. False
Indicate whether the statement is true or false
False
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Which one of the following best exemplifies the principal-agent problem in the employer- employee relationship?
A. A worker takes 20-minute coffee-breaks although the employer allots only 15 minutes for this purpose. B. A worker is on the job 50 hours per week although only 40 hours are required for promotion. C. A worker opts for early retirement in response to the firm's incentive plan. D. A worker's productivity is independent of the wage paid.
Karl Marx believed the central figures in an industrial economy were the
A. labor union leaders. B. heads of the ruling political party. C. capitalists. D. stock market speculators.
Most Americans
A. have accurate perceptions of the level of corporate profits. B. underestimate corporate profits. C. overestimate corporate profits. D. believe that corporations earn zero profit.
National defense is a public good _____
a. meaning it is an all-or-nothing proposition b. however it can be adjusted on the margin c. implying whatever output produced is efficient d. a and c