Under pure monopoly, a profit-maximizing firm will produce:
A. In the inelastic range of its demand curve
B. In the elastic range of its demand curve
C. Only where marginal costs are decreasing
D. Only where marginal revenue is increasing
B. In the elastic range of its demand curve
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Two common economic problems that may arise from asymmetric information are:
A. moral consequence and adverse selection. B. moral hazard and adverse selection. C. moral hazard and adverse decisions. D. moral consequence and adverse decisions.
Two goods are complements when a decrease in the price of one good
a. decreases the quantity demanded of the other good. b. decreases the demand for the other good. c. increases the quantity demanded of the other good. d. increases the demand for the other good.
The United States is divided into __________ Federal Reserve districts, each with a district bank
A) three B) eight C) twelve D) twenty E) fifty
A merger between the Ford Motor Company and the Firestone Tire Company would be a ________ merger.
A. horizontal B. vertical C. conglomerate D. diversifying