Refer to the table shown, which shows the demand schedule for a firm that has a monopoly on the sale of computers in the country of Oz. If the monopolist is currently producing 400 computers per year and it seeks to maximize profit, it should:Price of computers($)Quantity demanded per year5,0001004,0002003,0003002,0004001,000500
A. increase output.
B. lower the price of computers.
C. continue producing 400 units per year.
D. decrease output.
Answer: D
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In his second term, President George W. Bush revived his earlier proposal to
A. eliminate entirely the Social Security taxes paid by employers. B. place some Social Security taxes of young workers in private accounts under their control. C. place all Social Security taxes of young workers in private accounts under their control. D. reduce by one-half the Social Security tax rates on employers.
Which of the following is the BEST example of a common resource?
A) a can of Mountain Dew B) fish in the ocean C) cable television D) national defense
A change in demand for a resource can be caused by
a. proportion of economic rent in the total earnings of the resource b. opportunity cost of the resource c. price of the resource d. a change in the number of firms producing the final product e. ease with which resources can be put to alternative uses
Refer to Figure 8.3. What is the average cost of producing 290 units of output?
A. $9
B. $2,500
C. $8.62
D. $7.77