Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? The monopolist has
A. maximized its total revenue.
B. maximized the difference between marginal revenue and marginal cost.
C. set price equal to its average cost.
D. equated marginal revenue and marginal cost.
Answer: D
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"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the long run in the corn market, what is TRUE if the production of ethanol increases?
A) Existing corn farmers will exit the market and decrease the market price. B) New corn farmers will enter the market and increase the market price. C) Existing corn farmers will exit the market and increase the market price. D) New corn farmers will enter the market and decrease the market price.
The concept of absolute poverty states that anyone who falls too far behind the average income should be considered poor
a. True b. False Indicate whether the statement is true or false
You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. Your firm's maximum profits are:
A. 0. B. 170. C. 66. D. 120.
A tax whose burden, expressed as a percentage of income, falls as income increases is a
A. progressive tax. B. benefits-received tax. C. regressive tax. D. proportional tax.