Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, its total revenue equals the area:
A. 0HNC.
B. 0FJB.
C. ELJB.
D. 0FLE.
Answer: B
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The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, deadweight loss occurs because
A) consumers place a greater value on the last apartment unit than the cost to supply it. B) the supplier of the last apartment unit receives a rental price that is less than the marginal cost of supplying it. C) the quantity of apartments supplied has decreased. D) All of the above.
The primary reason that money is demanded is for: a. transaction purposes
b. asset purposes. c. precautionary reasons. d. investment purposes.
Less-developed countries are experiencing rapid population growth because _____
a. birthrates are rising at a slower rate than mortality rates b. birthrates are falling while mortality rates are rising c. both birthrates and mortality rates are falling d. birthrates are rising while mortality rates are falling e. birthrates are constant and mortality rates are rising
The more elastic the demand, the less consumers will respond to a change in price
a. True b. False Indicate whether the statement is true or false