Let's use the example from the text: The Nick Rudd Ice Company is a monopoly. Its goal, then, is to
a. hire as many workers as possible
b. maximize profit
c. produce as much as possible to capture market share
d. produce where marginal cost equals price
e. charge the highest price possible
B
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Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations?
A) stricter consumer protection laws B) privately owned, government-sponsored enterprises (GSEs) such as Fannie mae and Freddie Mac C) resolution authority over the large financial institutions D) higher requirements on firms dealing in derivatives
If the dollar rises in value against other currencies, this will
A. lower our trade deficit. B. make our exports more expensive and our imports cheaper. C. make our exports cheaper and our imports more expensive. D. make both our exports and imports more expensive.
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
a. Be envious b. Try to decrease your competitor's pie while increasing your own c. Do not be envious-focus on your slice of the profit pie d. All of the above
Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being
a. True b. False Indicate whether the statement is true or false