Consider a monopoly where the inverse demand for its product is given by P = 80 ? 2Q. Total costs for this monopolist are estimated to be C(Q) = 100 + 20Q + Q2. At the profit-maximizing combination of output and price, deadweight loss is:
A. $50.
B. $80.
C. $30.
D. Cannot be determined with the given information.
Answer: A
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If a pair-wise majority vote was held and the voters' preferences are shown in the table, assuming public parks and the zoo was the first pair to be voted on, which option would win overall?
A. Public transportation
B. Public zoo
C. Public parks
D. Both Public parks and zoo.
A firm's total revenue can be determined by
A. Total costs minus variable costs. B. Profits minus costs. C. Fixed costs minus quantity. D. Price times quantity.
According to economists, investment includes:
A. Production of plant and machinery. B. Purchasing or hiring factors of production. C. Purchases of corporate stock. D. Money put into a pension fund
A decrease in aggregate demand as a consequence of government decisions to alter its levels of expenditure and revenues involves which of the following?
a. Decreases in spending. b. Increases in tax rates and collections and decreases in spending. c. Decreases in tax rates, collections, and spending. d. Increases in spending and decreases in tax rates and collections.