Monopolists set prices
A. Without constraints since there is no competition.
B. At the output where marginal revenue equals marginal cost.
C. At the minimum of the long-run average total cost curve.
D. On the marginal revenue curve.
Answer: B
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Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A can make a maximum loan of
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
Perfect competition is defined as market structure in which:
a. there are many small sellers. b. the product is homogeneous. c. it is very easy for firms to enter or exit the market. d. all of these.
Most economists support the idea of peak-load pricing on the grounds of
A. fairness in income distribution. B. efficiency in input usage. C. equality of opportunity. D. efficiency in output allocation.
The CPI includes the prices of
a. goods and services purchased by American consumers b. goods and services purchased by all consumers (both foreign and domestic) c. goods and services purchased by the government d. investment goods purchased by businesses e. exports purchased by foreign buyers