If a monopolist produces to a point at which marginal revenue is greater than marginal cost then
A) profits are being maximized.
B) profits will always be negative.
C) the incremental cost of producing the last unit exceeds the incremental revenue.
D) the incremental cost of producing the last unit is less than the incremental revenue.
D
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International investors are more likely to invest in countries
A) where it is relatively easier to establish property rights to capital goods. B) where there is a significant amount of dead capital. C) which have a high amount of government inefficiency. D) where there are barriers to the ownership of capital goods.
A downward shift in the consumption function can be caused by:
a. expectations of higher inflation. b. an increase in wealth. c. a lower price level. d. none of these.
In the long run,
a. competitive firms' profits are zero. b. competitive firms' variable costs are zero. c. competitive firms' ATC curves shift upward or downward to ensure that all demand is satisfied. d. the number of firms in the market is fixed.
Refer to Figure 20.2. Comparing the price elasticity of demand at points A and C, we can say that
A. Point C has a greater price elasticity of demand in absolute value. B. Demand elasticity is indeterminate because specific price data are not given. C. The elasticities are the same because the points are on the same demand curve. D. Point A has a greater price elasticity of demand in absolute value.