At the current price of a good Al's consumer surplus equals 8 and Ben's consumer surplus equals 15. By using two-part pricing a monopolist could increase his profit by
A) 8.
B) 16.
C) 15.
D) 30.
B
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If the MPS = 0.2, the multiplier would be
A) 0.5. B) 1. C) 2. D) 5.
What is an optimal decision?
What will be an ideal response?
McDonald's and its major competitors compete based:
A) only on the price. B) only on the basis of product characteristics. C) on both the price and product characteristics. D) none of the above because the fast-food industry is perfectly competitive.
On the graph above, if inflation is rising, while the quantity demanded and output are rising, the economy may be at a point on ________
A) the aggregate supply curve above the aggregate demand curve B) the aggregate supply curve below the aggregate demand curve C) the aggregate demand curve above the aggregate supply curve D) the aggregate demand curve below the aggregate supply curve E) none of the above