At an output level of 100, a monopolist faces MC = 15 and MR = 17. At output level q = 101, the monopolist faces MC = 16 and MR = 15. To maximize profits, the firm
A) should produce 100 units.
B) should produce 101 units.
C) The firm cannot maximize profits.
D) The firm is not a monopoly.
A
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A production possibilities frontier figure does NOT illustrate
A) the limits on production imposed by our limited resources and technology. B) the exchange of one good or service for another. C) opportunity cost. D) attainable and unattainable points.
When sellers have better information about product quality than do buyers, lower-quality products tend to become more common in the market
a. True b. False
If more international tourists visited the United States, this would
A. lower the U.S. merchandise trade imbalance. B. lower the U.S. overall trade imbalance. C. raise the U.S. merchandise trade imbalance. D. raise the U.S. overall trade imbalance.
Fiscal policy is policy aimed at controlling undesired fluctuations in overall spending through changes in
A) government expenditures and taxes. B) government subsidies to marginal business firms. C) interest rates. D) methods of making seasonal adjustments. E) price and wage regulation.