Assume that a profit maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. We can conclude that the
A) firm is maximizing profit.
B) firm's output is smaller than the profit maximizing quantity.
C) firm's output is larger than the profit maximizing quantity.
D) firm's output does not maximize profit, but we cannot conclude whether the output is too large or too small.
B
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In a prisoners' dilemma game, which of the following strategies gives the best outcome for both prisoners?
A) Both deny (collusion). B) Both confess (not collude). C) One confesses while the other denies. D) none of the above
The price elasticity of demand for a good is 0.2 . A 10 percent rise in the price will _______ the total revenue from sales of the good
A. decrease B. increase C. decrease the quantity sold with no change in D. not change
Suppose the mean earnings of two groups differ. Which of the following would be the logical conclusion?
a. The group with the lowest earnings must be less productive. b. Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination. c. The group with the lowest earnings must be the victim of employment discrimination. d. The group with the highest earnings is more highly motivated and materialistic
If you had a windfall of $5,000 in the present time period and you save some of it, you're saving behavior would likely be due to the fact that
A. your indifference curves for present and future are horizontal. B. your marginal utility of present income falls as your income goes up. C. the extra income changes the slope of your time preference indifference curves making then steeper. D. your indifference curves for present and future income are vertical.