If the exchange rate between the U.S. dollar and the Japanese yen were such that one U.S. dollar equals 100 yen, what would be the price in dollars of a Japanese automobile that cost 2,000,000 yen?
a. $100
b. $20,000
c. $120,000
d. $2,000,000
B
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Suppose a monopolist can charge different prices to different customers, such as doctors charging different prices depending on whether the patient is insured. How will profits and marginal revenue of such a price-discriminating monopolist compare to profits and MR of an ordinary monopolist who must charge all patients the same fee?
What will be an ideal response?
When drawing a demand curve,
a. demand is measured along the vertical axis, and price is measured along the horizontal axis. b. quantity demanded is measured along the vertical axis, and price is measured along the horizontal axis. c. price is measured along the vertical axis, and demand is measured along the horizontal axis. d. price is measured along the vertical axis, and quantity demanded is measured along the horizontal axis.
Which of the following industries does not fit the natural monopoly model?
A. Natural gas B. Cable TV C. Electricity D. Fast food restaurants
In general, production possibilities curves are "bowed out" because:
A) it's wasteful to produce too much of any one good. B) people generally prefer to consume goods in appropriate combinations. C) of the law of increasing opportunity cost. D) of the law of demand.