Economic profit can be viewed as
a. a reward for bearing risks.
b. an undeserved "reward" for exercising monopoly power.
c. a reward for innovation.
d. All of the above are correct.
d
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The slope of an indifference curve is called the
A. bliss gradient. B. happiness slope. C. average transformation rate. D. marginal rate of substitution.
Which of the following is possible when the market fails?
A. It is impossible for government intervention to improve the mix of goods and services. B. The mix of goods and services is at the correct point on the production possibilities curve. C. The mix of goods and services is the optimal mix. D. The mix of goods and services is on the production possibilities curve.
Refer to the given data. We can conclude from the information given that this firm is a:
A. pure monopolist.
B. discriminating monopolist.
C. monopolistic competitor.
D. pure competitor.
Refer to the diagram, assuming that the firm represented is operating on curve TC 0 . How much will the firm extract this year?
A. 500.
B. 750.
C. 1,000.
D. It cannot be determined with the information given.