To maximize profit, a firm in monopolistic competition will produce the quantity where marginal revenue
A) is greater than marginal cost.
B) equals zero.
C) is less than marginal cost.
D) equals marginal cost.
E) equals average total cost.
D
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Refer to Figure 3.1. If Marge confesses to the crime and Homer does not, what is Homer's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
Sometimes during wars, government expenditures are larger than normal. To reduce the effects this spending creates on interest rates,
a. the Federal Reserve could increase the money supply by buying bonds. b. the Federal Reserve could increase the money supply by selling bonds. c. the Federal Reserve could decrease the money supply by buying bonds. d. the Federal Reserve could decrease the money supply by selling bonds.
Which of the following is the best example of a private, unregulated monopoly or near-monopoly is:
A. the local post office. B. the local electric company. C. a professional sports team. D. the only large employer in a small town.
Which of the following is a property of a public good?
A. It is established by legislation. B. Free riders are excluded. C. Users collectively consume benefits. D. It is determined by positive economics.