Under the total revenue and total cost approach to profit maximization,
a. firms equate total cost and total revenue in order to maximize profit
b. the profit-maximizing output level is equivalent to the total revenue-maximizing output level
c. when total costs are minimized, profits are maximized
d. firms choose the output level where TR - TC is greatest
e. total cost must always exceed total revenue in the long run
D
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When first-degree price discrimination is perfectly implemented
a. social gain is maximized, with all gains going to the monopoly. b. consumers' surplus and producer's surplus are both larger than in the case of simple monopoly. c. the resulting deadweight loss is larger than if the monopoly did not price discriminate. d. the consumers' and producer's gains from trade are identical to those in a competitive market.
Compared to the perfectly competitive firm, the monopolist's input demand curve is
A) more elastic. B) more inelastic. C) due to a constant per-unit price of the product. D) marginal factor cost.
We use the term expansionary fiscal policy when the overall effect of decisions about taxation and spending is to:
A. increase aggregate demand. B. decrease aggregate demand. C. increase aggregate supply. D. decrease aggregate supply.
An expansionary fiscal policy is likely to
A) increase borrowing by the Treasury through the sale of bonds. B) decrease borrowing by the Treasury through the purchase of bonds. C) increase borrowing by the Treasury through the purchase of bonds. D) decrease borrowing by the Treasury through the sale of bonds.