If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce where demand elasticity is ________ if it will produce at all.
A. 1
B. elastic
C. inelastic
D. Information is inadequate to answer the question.
Answer: A
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Insurance companies:
A. only profit by selling to risk neutral clients. B. profit from the difference between the premiums paid and the expected value of clients' payouts. C. must charge less than the expected value of payout, otherwise they would go out of business. D. All of these statements are true.
Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?
What will be an ideal response?
How are pollution and GDP related?
A. only the harm from pollution is included in GDP B. the value of produced goods that lead to pollution are counted in GDP and pollution is not counted C. goods whose production creates pollution are not counted in GDP
The rate of discount is best described as the rate of
A) return on physical capital after the cost of capital has been removed. B) return on financial assets after an inflation adjustment has been made. C) interest used to derive the present values of future sums. D) return on financial capital that has not been adjusted for inflation.