A pure monopolist's short-run profit-maximizing or loss-minimizing position is such that price:
A. equals marginal revenue.
B. will vertically intersect demand where MR = MC.
C. will always equal ATC.
D. always exceeds ATC.
Answer: B
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If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________
A) might rise, fall, or stay the same; decreases B) might rise, fall, or stay the same; increases C) falls; increases D) rises; might increase, decrease, or stay the same
With perfect price discrimination there is
A) an increase in consumer surplus. B) one single price. C) no deadweight loss. D) no producer surplus.
The unbalanced development strategy is preferred by many economists because
a. it relies on the vast resources of government rather than on the unreliable promises of private investment b. it creates a dynamic chain reaction of economic development c. it promotes economic dualism d. it overcomes the obstacles created by forward and backward linkages e. it favors demand-induced investments over supply-induced investments
If the demand for a good falls when income falls, then the good is called an inferior good
a. True b. False Indicate whether the statement is true or false