For the monopoly shown in the figure above, when it maximizes its profit the marginal cost is ________ per unit and the price is ________ per unit
A) $10; $30
B) $20; $20
C) $10; $20
D) $30; $20.
A
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One way to solve the free-rider problem is:
A. have the government provide the good at a certain cost. B. make the good or service more excludable. C. tax those who truly value the good. D. tax everyone an equal amount for the good.
Using the exact formula, the nominal interest rate equals:
a. Real interest rate + Actual inflation + (Real interest x Actual inflation). b. Real interest – Expected inflation. c. Real interest + Expected inflation + (Real interest x Expected inflation). d. Real interest – Expected inflation – (Real interest x Expected inflation).
According to the textbook, expensive advertising campaigns are:
A. a waste of resources because they provide no useful information about product quality. B. not a credible signal of quality because of adverse selection. C. only a credible signal of product quality if they mention a money-back guarantee. D. a credible signal of product quality.
A(n) _________ is defined as a significant decline in economic activity spread across the economy, lasting more than a few months.
A. economic deficit B. depression C. regressive economy D. recession