If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the firm will
A) incur an economic loss.
B) make zero economic profit, that is, its owners make a normal profit.
C) make an economic profit of $4 million.
D) make an economic profit of $16 million.
A
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Distinguishing between stock measures and flow measures of the labor force, the stock measures are
A) the labor force only. B) the number of people who lost their jobs and the number of people who found jobs only. C) the total number of people who are unemployed only. D) the total number in the labor force and the total number of people who are unemployed only.
An increase in the price of a loaf of bread will
a. cause the budget constraint to rotate outward b. reduce the minimum number of loaves any individual consumer can purchase c. increase the minimum number of loaves any individual consumer can purchase d. increase the maximum number of loaves any individual consumer can purchase e. reduce the maximum number of loaves any individual consumer can purchase
The burden of a tax is placed entirely on the buyers of a good when the demand for the good is _____
a. perfectly inelastic b. perfectly elastic c. unit elastic d. relatively elastic
It would be more reasonable to use annual income data as an index of economic inequality if all of the households
a. filed tax returns and thus all their income were known. b. were different with regard to their age and size characteristics. c. were more similar with regard to size, age, education, and other major factors that are linked to income. d. were more similar with regard to their hair color, height, and weight.