?If marginal cost is less than average total cost, then:
a. ?average variable cost must equal average total cost.
b. ?average total cost must be increasing.
c. ?average variable cost must be decreasing.
d. ?marginal cost must be falling.
e. ?average variable cost may be increasing or decreasing.
Ans: e. ?average variable cost may be increasing or decreasing.
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Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum
a. True b. False Indicate whether the statement is true or false
Which of the following best explains an economic criticism of unregulated monopolists?
A. Monopolists do not try to minimize their fixed costs of production. B. Monopolists produce where marginal revenue is greater than marginal costs. C. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. D. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
Refer to Table 9.2. In which market do buyers underestimate the chance of getting a lemon?
A. 1 only B. 2 only C. 1 and 3 only D. 2 and 3 only
Assume that there is a supply and demand market for non-preferred workers. If prejudice against these workers among employers increases, then there will be a(n):
A. Increased supply of these workers, a rise in their wage rate, and a decrease in their employment B. Increased demand for these workers, a rise in their wage rate, and an increase in their employment C. Decreased supply of these workers, a fall in their wage rate, and a decrease in their employment D. Decreased demand for these workers, a fall in their wage rate, and a decrease in their employment