Which of the following is NOT true about the demand curve faced by a monopolist?
A. The demand curve is perfectly elastic.
B. The firm's demand curve is the same as the market demand curve.
C. The demand curve is downward sloping.
D. The marginal revenue curve is below the market demand curve.
Answer: A
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Use the figure below to answer the following question.
What is the amount of deadweight loss after the government imposes the excise tax on the market?
A. $4 B. $36 C. $32 D. $2
What is a good argument for using the model of the consumer despite the fact that it requires making many simplifying assumptions?
A) It is complex to solve. B) The assumptions are sometimes realistic. C) It explains observed patterns of behavior. D) It is used in many scholarly fields.
If the minimum efficient scale in toaster production is 500,000 units per year,
a. the average cost of producing 300,000 toasters is greater than the average cost of producing 500,000 b. the average cost of producing 300,000 toasters is equal to the average cost of producing 500,000 c. the total cost of producing 300,000 toasters is greater than the total cost of producing 500,000 d. the firm should not produce more than 500,000 toasters e. MC exceeds AC at 500,000 toasters
If income redistribution policy is based on the relative concept of poverty, the war on poverty
a. will be won quite soon. b. is, by definition, unwinnable. c. has not helped at all. d. has already been won.