Consider the monopoly depicted in Figure 13.3. Relative to the cost of producing the quantity the monopolist would choose under an average-cost pricing policy, the cost of producing Q4 units is:
A. less.
B. the same.
C. more.
D. twice as much.
Answer: A
You might also like to view...
In the United States, barriers to entry in professional team sports (for example, football and baseball) result from
A) the draft of college players, which grants teams exclusive signing rights to individual players. B) long-term leases teams sign for stadiums and ballparks in major cities. C) the reserve clause, which is a provision in contracts of professional athletes that require them to play for specific teams over the length of their contracts. D) television contracts, which give networks the exclusive rights to broadcast games.
The price elasticity of demand is measured as the percentage change in price divided by the percentage change in quantity demanded
Indicate whether the statement is true or false
Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the wage rate in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.
All of society's applied knowledge on how to produce goods and services is
A. held by university professors. B. opportunity cost. C. called technology. D. efficiency.