If you were going to contract a facility by removing 10% of the older seats, but the costs of providing ushers and other personnel to deal with the remaining seats was exactly the same (on a per seat basis) as it had been, the new MC curve would look like the previous one, except that it would
A. just shift to the right.
B. just shift up.
C. no longer be a backward L but would be upward sloping once the old capacity was reached.
D. just shift to the left.
Answer: D
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The price chosen by a monopolist:
A) maximizes social surplus. B) maximizes consumer surplus. C) is dependent on the production of other firms. D) is independent of the production of other firms.
When future events cannot be assigned probabilities, we are talking about
A) risk. B) uncertainty. C) a clouded future. D) financial risk.
The aim of antitrust policy is to:
a. provide adequate incentives for inventors and entrepreneurs. b. prevent firms from acquiring or exercising undue market power. c. protect established firms by deterring new entry into industries. d. regulate the prices charged by perfectly competitive firms.
When the Fed practices contractionary monetary policy, the interest rate goes:
A. up, and the exchange rate will appreciate as a result. B. up, and the exchange rate will depreciate as a result. C. down, and the exchange rate will appreciate as a result. D. down, and the exchange rate will depreciate as a result.