From society's point of view, a monopolist produces too little because price
A. is less than marginal cost.
B. exceeds marginal cost.
C. exceeds average cost.
D. is less than average cost.
Answer: B
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Let C = 300 + 0.9y and I = 125. The value of the multiplier is
A) 0.9. B) 9. C) 10. D) 27.
When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods
A) must increase. B) must decrease. C) must remain the same. D) must change but they might increase or decrease. E) might increase if the nation can produce more efficiently.
Choosing optimal user fees for government produced services is similar to choosing optimal taxes.
A. True B. False C. Uncertain
Which of the following is an example of an oligopolistic market structure?
a. public utilities b. air transport industry c. liquor retailers d. wheat farmers e. none of the above