Verizon has a monopoly over local telephone service. If Verizon is producing where marginal revenue is greater than marginal cost, the firm
A. could increase profits by reducing output.
B. must be earning zero profit.
C. could increase profits by increasing output.
D. is maximizing profits.
Answer: C
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If people leave bequests primarily because they are uncertain about the timing of their deaths,
A) the marginal propensity to consume out of a temporary change in income would tend to be higher than in the simple version of the LCH. B) unrealized capital gains from higher housing prices will probably lead to a higher consumption-to-income ratio than in the simple version of the LCH. C) increases in wealth from the stock market would be consumed over a longer time horizon than in the simple version of the LCH. D) A and C are both correct.
Which of the following would be categorized as "land"?
A) timber B) human capital C) buildings D) entrepreneurship
As the price of ballpoint pens increases, the demand for felt-tip pens can be expected to decrease
a. True b. False
Data on DVD sales for three different years can best be compared by using a
a. crystal ball b. bar graph c. psychic d. pie graph