Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist. QuantityPrice1$102$93$84$75$66$57$48$3If the marginal cost of producing each unit of output is $5, then this monopolist's profit-maximizing level of output is ________.
A. 2
B. 5
C. 3
D. 4
Answer: C
Economics
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A fall in the price of lemons from $10.50 to $9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand is
A) 0.80. B) 1.20. C) 1.25. D) 8.00.
Economics
Efficient resource allocation is defined as MC = AC
a. True b. False Indicate whether the statement is true or false
Economics
Variable costs usually change as the firm alters the quantity of output produced
a. True b. False Indicate whether the statement is true or false
Economics
Fiscal restraint will definitely occur if the government:
A. Reduces its spending and reduces tax rates. B. Reduces its spending and increases tax rates. C. Increases its spending and reduces tax rates. D. Increases its spending and increases tax rates.
Economics