A profit-maximizing monopolist will receive zero profits when
A. the average total cost curve lies above the demand curve for all possible rates of output.
B. marginal revenue, marginal cost, and average total cost are all equal.
C. the average total cost curve is tangent to the demand curve at the profit maximizing price.
D. a second firm enters the industry.
Answer: C
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Where can an economy not produce?
a. inside its production possibilities frontier b. on its production possibilities frontier c. outside its production possibilities frontier d. at the endpoints of its production possibilities frontier
Karen's cat causes Danny to sneeze. Karen values her cat's companionship at $300 per year. The cost to Danny of tissues and her allergy medication is $350 per year. Based on the Coase theorem,
a. Karen should pay Danny $400 so that she may keep her cat. b. Karen should pay Danny $350 for tissues and allergy medication. c. Danny should pay Karen $325 to give away her cat. d. Danny should move.
The accompanying figure shows a a single consumer's demand for ice cream at the student union.
During the summer, there are 300 students on campus. Each student's weekly demand for ice cream is shown above. When the price of ice cream is $2.00 per scoop, those 300 students purchase a total of ________ scoops per week from the student union.
A. 3,000 B. 1,500 C. 1,800 D. 1,200
Which of the following is NOT a program designed to attack poverty?
A) Supplementary Security Income B) food stamps C) Social Security D) federal corporate income tax