The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?
A. price charged of $800 and quantity produced of 2
B. price charged of $900 and quantity produced of 1
C. price charged of $600 and quantity produced of 4
D. price charged of $700 and quantity produced of 3
Answer: D
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The table above gives data for the nation of Mosh. The MPC of the economy is
A) .75. B) 1. C) .90. D) .80. E) indeterminate with the information provided.
Which of the following will not cause a demand curve to shift position?
a. A doubling of the good's price. b. A doubling of the price of a closely substitutable good. c. A doubling of income. d. A shift in preferences. e. A doubling of both the price of X and the price of Y.
Although Denmark currently pegs its krona to the euro successfully, it has not joined the currency union. All of the following are reasons, EXCEPT:
A) with a peg, the Danish monetary authority has the option to exercise control over the exchange rate in the future if needed. B) Denmark has an additional option to abandon its peg to the euro if required to maintain stability. C) Denmark has the option to conduct monetary policy if it chooses. D) if Denmark gave up its krona and adopted the euro, it could always easily go back to the krona if needed to preserve monetary autonomy.
Who controls a sole proprietorship?
A) stockholders B) bondholders C) the owner D) all of these