Refer to the graph shown. The profit-maximizing monopolist produces output:
A. Q1.
B. Q2.
C. Q3.
D. Q4.
Answer: B
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What were the negative results predicted by Malthus' and how can we avoid such results?
Firms that operate in perfectly competitive markets try to
a. maximize revenues. b. maximize profits. c. equate marginal revenue with average total cost. d. All of the above are correct.
Figure 9.9 depicts a market for electricity. S1 is the supply curve without the external costs. S2 is the supply curve with the $T tax. Assume electricity production incurs external costs. If the government imposes a pollution tax in the amount illustrated, the amount of the pollution tax borne by the electricity producers is:
A. PA - PB. B. PA - PC. C. PB - PC. D. (1/2)?(PA - PB).
Under the gold standard, a country with a negative balance of trade would experience
A. an inflow a gold and higher prices. B. an inflow of gold and lower prices. C. an outflow of gold and higher prices. D. an outflow of gold and lower prices.