Monitoring a monopoly to keep it efficient would itself be efficient if the extra profit achieved by:
A. raising production costs is less than the costs of monitoring.
B. reducing production costs is less than the costs of monitoring.
C. reducing production costs exceeds the costs of monitoring.
D. raising production costs exceeds the costs of monitoring.
Answer: C
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Human capital is
a. a stock of equipment and structures. b. the result of investments workers make in themselves such as education. c. a difference in wages that arises to offset the nonmonetary characteristics of different jobs. d. a characteristic that affects a worker's self-esteem but not her wages.
Refer to Scenario 1. As a result of Sheila's deposit, Perez Bank can increase its loans by
A) $10,000. B) $90,000. C) $100,000. D) $1,000,000.
Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. A decrease in the MPS
A. makes the consumption function flatter. B. shifts the consumption function upward. C. makes the saving function flatter. D. shifts the saving function downward.
Refer to the below graph, where TP = total product and L = labor input. If this graph is for a firm that sells its product in a purely competitive market, then its marginal revenue product of labor (MRP):
A. Is constant at all levels of L
B. Increases at an increasing rate as L increases
C. Decreases as the labor input L increases
D. Increases at a decreasing rate as L increases