A profit-maximizing monopolist that produces in the short run will
a. produce the level of output where marginal revenue exceeds marginal cost by the largest amount
b. increase output as long as the marginal revenue exceeds the marginal cost of producing that unit
c. produce the level of output where average total cost is at a minimum
d. increase price as long as the average revenue exceeds the average total cost
e. produce the level of output where average revenue exceeds average total cost by the largest amount
B
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Which of the following statements is true?
A) Producer surplus measures the total benefit received by producers from participating in a market. B) When a market is in equilibrium consumer surplus equals producer surplus. C) Consumer surplus measures the total benefit from participating in a market. D) Consumer surplus measures the net benefit from participating in a market.
Which of the following is not a technical barrier to entry in a monopolized market?
a. A patent. b. Decreasing average cost. c. A low cost method of production known only by monopolist. d. Increasing returns to scale.
As the investment demand curve becomes steeper, the crowding-out effect will become smaller
a. True b. False Indicate whether the statement is true or false
Which of the following about inventory changes and GDP is true?
a. Inventory investment adds to GDP because it represents goods produced during the current period. b. Inventory investment is subtracted from GDP because the goods were not sold during the period. c. Inventory investment does not affect GDP because the goods were not sold during the period. d. Inventory investment does not affect GDP because it does not represent goods produced during the period.