Costs of production that do not change with the rate of output are:
a) Nonexistent.
b) Marginal costs.
c) Variable costs.
d) Fixed costs.
Ans: d) Fixed costs.
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Use the above figure. If this monopolist was not regulated, the profit-maximizing quantity and price would be
A) Q2 and P1. B) Q2 and P3. C) Q3 and P2. D) Q4 and P1.
Which of the following statements is true?
a. A monopsony is the only employer of a factor of production. b. A monopsony will pay workers a higher wage and employ fewer workers than a competitive labor market. c. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. d. Unions are becoming a greater influence in American labor markets. e. All of these.
A Giffen good is a good for which an increase in the price
a. decreases the quantity supplied. b. increases the quantity supplied. c. decreases the quantity demanded. d. increases the quantity demanded.
The circular flow model shows that the goods and services produced by business firms are sold through:
A. money markets. B. resource markets. C. product markets. D. stock markets.