The table above shows the demand and costs for a single-price monopolist. The maximum economic profit this firm can make equals
A) $1,390.
B) $1,550.
C) $1,580.
D) $2,400.
A
You might also like to view...
The problems with using the consumer price index as a measure of the cost of living are important because
a. even the appearance of high rates of inflation cause voters to become disenchanted. b. politicians have manipulated the measurement problems to their advantage. c. many government programs use the CPI to adjust for changes in the overall level of prices. d. if the price level is overstated, consumers will be taken advantage of by sellers of consumer goods.
The ceteris paribus assumption is important in economics because
A) all empirical data are equal. B) it would be impossible to relate the changes in one variable to another variable without holding other variables constant. C) economic data move very slowly over time and so they can always be considered constant. D) models are always complex and require as many variables as possible.
An example of a monopoly based on control of a key resource is
A) Major League Baseball. B) NASA. C) Microsoft's Windows operating system. D) the U.S. Food and Drug Administration.
Suppose the current level of output is 10,000 and the elasticity of output with respect to labor is 0.8. A 10% increase in labor would increase the current level of output to
A. 10,008. B. 10,080. C. 18,000. D. 10,800.