A monopolist has the market demand and marginal cost schedules given in the above table. If the monopoly can perfectly price discriminate, what is the profit-maximizing level of output and price?
What will be an ideal response?
As a perfectly price discriminating monopoly, the profit-maximizing level of output is 4 units and the price ranges from $22 to $16 for each unit.
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A recession in the rest of the world means U.S
A) exports increase. B) aggregate demand decreases. C) potential GDP decreases. D) potential GDP increases. E) aggregate supply decreases.
Refer to Figure 10.7. A movement from point D to point C could be caused by
A) a positive demand shock. B) an increase in the term premium investors expect in the future. C) an increase in the term structure effect. D) an increase in the expected rate of inflation.
Which of the following statements is (are) true of the prisoners' dilemma? (i) Rational self-interest leads neither party to confess. (ii) Cooperation between the prisoners is difficult to maintain. (iii) Cooperation between the prisoners is individually rational
a. (ii) only b. (ii) and (iii) c. (i) and (iii) d. (i), (ii), and (iii)
GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because
a. the quality of these items is not high enough to contribute value to GDP. b. measuring them is so difficult. c. the government wants to discourage the production and consumption of these items. d. these items are not reported on income tax forms.