A monopolist will not be able to receive a positive economic profit at any price-output combination at which
A) marginal cost is less than average total cost when the monopolist has equated marginal revenue and marginal cost.
B) the average total cost curve is everywhere above the demand curve.
C) marginal cost is less than average variable cost when the monopolist has equated marginal revenue and marginal cost.
D) marginal revenue falls at a faster rate than marginal cost increases.
Answer: B
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Economists Gary Becker and Kevin Murphy are associated with which of the following?
A) They discovered that price changes have both income and substitution effects. B) They have argued that social factors are not important in explaining the choices consumers make. C) Consumers appear to receive utility from consuming goods they believe are popular. D) They discovered the first example of a Giffen good.
The market structure that is most different from the model of perfect competition is:
A) monopolistic competition. B) monopsony C) oligopoly. D) monopoly.
Which of the following games involving the roll of a single die is a fair bet?
A) Bet $1 and receive $1 if 3 or 4 comes up. B) Bet $1 and receive $1 if 3, 4, or 5 comes up. C) Bet $1 and receive $4 if 6 comes up. D) None of the bets is a fair bet.
Decisions about what to buy and what to sell in the United States are determined primarily by which of the following?
a. Laws of supply and demand b. Projected business profit c. Market price d. Demand curve.