Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output. As a result the monopoly's profit will fall
Indicate whether the statement is true or false
TRUE
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The profit-maximizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR is at a maximum. B) TR - TC is at a minimum. C) MR = MC. D) TR - ATC is at a maximum.
Which of the following would be an example of how pure luck contributes to income inequality?
A. Approval to receive unemployment benefits B. Receipt of a government grant for housing C. Selection as winner of a state lottery D. Admission to a state university
Use the following table to answer the question below
Price per Unit Quantity Demanded per Year Quantity Supplied per Year $5 2,000 0 10 1,800 300 15 1,600 600 20 1,400 900 25 1,200 1,200 30 1,000 1,500 In this competitive market, the price and quantity will settle at
With one year of study, Rob Sanchez can earn a master's degree, which will cost him $15,000 in tuition and $20,000 in lost wages. The degree will increase his yearly income by $20,000 per year for three years after receiving the degree. The interest rate is 10 percent (0.10) per year. What should Rob do? (Assume that costs are incurred and income is received at the end of the year.)
a. he should obtain the degree because education always pays off b. because the cost of tuition and lost wages ($35,000 . is less than the extra income ($60,000), he should obtain the degree c. he should subtract the present value of tuition from the total present value of the additional income. If the number is positive, he should obtain the degree d. he should subtract the total present value of the tuition and lost wages from the total present value of the additional income. If the number is positive, he should obtain the degree e. he should subtract the present value of lost wages from the total present value of additional income. If the number is positive, he should obtain the degree