A monopoly definitely incurs an economic loss if
A) it produces where its marginal revenue equals its marginal cost.
B) its average total cost is greater than price.
C) it cannot perfectly price discriminate.
D) it price discriminates.
E) The statement errs because a monopoly cannot incur an economic loss.
B
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A closed shop is an agreement whereby
a. employers promise not to layoff workers during recessions. b. employees are forbidden from joining a union. c. employers pledge not to replace workers with machines. d. employees must join a recognized union as a condition of employment.
Cost curves shift if i. technology changes. ii. the prices of factors of production change. iii. productivity changes
A) only i B) i and iii C) only ii D) i and ii E) i, ii, and iii
The phrase used by Walter Heller to refer to the government's role in regulating inflation and unemployment is
A. stagflation. B. fine-tuning. C. market clearing. D. price adaptation.
Referring to Table 12.2, if the nominal interest rate is 3.5 percent and there is no inflation, which investments will be undertaken?
A) B, D, E B) D, E C) B, C, D, E D) C, E