The price effect describes the situation when a monopolist lowers the price of output and, all else equal, total revenue
a. increases.
b. decreases.
c. is unchanged.
d. is maximized.
b
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Group price discrimination results in social welfare that ________ under a single-price monopoly
A) is greater than B) is lower than C) is the same as D) might be greater or might be lower than
For each watch Denmark produces, it gives up the opportunity to produce 50 pounds of cheese. France can produce two watches at a cost of 150 pounds of cheese. Which of the following is true?
a. Denmark has a comparative advantage in producing both watches and cheese. b. France has a comparative advantage in producing both watches and cheese. c. France has the comparative advantage in producing watches. d. Denmark has the comparative advantage in producing watches. e. Denmark has the comparative advantage in producing cheese.
The perfectly competitive firm's short-run shutdown rule is to shut down immediately if
a. TR < TC. b. TR < SRFC. c. TR < SRVC. d. TR < MC > Q.
A household is helped, on the ________ side, when its net profits or wages rise and is helped, on the ________ side when the prices of goods and services decrease.
A. uses; sources B. sources; uses C. input; output D. flow; stock