A monopolist determines the profit-maximizing output
A) at the point at which TR = TC.
B) at the point at which MR = MC.
C) at any point it wants because it is the only producer of the product.
D) at the point at which TR is maximum.
B
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If the Federal Reserve decided to include virtual money like Bitcoins in its measure of the money supply, what would be the effect on M1 or M2?
A) M1 would rise. B) M1 would rise and M2 would remain constant. C) M2 would rise but M1 would remain constant. D) M1 would fall.
According to the efficient markets hypothesis, purchasing the reports of financial analysts
A) is likely to increase one's returns by an average of 10%. B) is likely to increase one's returns by about 3 to 5%. C) is not likely to be an effective strategy for increasing financial returns. D) is likely to increase one's returns by an average of about 2 to 3%.
In a Cournot duopoly, we find that Firm 1's reaction function is Q1 = 50 - 0.5Q2, and Firm 2's reaction function is Q2 = 75 - 0.75Q1. What is the Cournot equilibrium outcome in this market?
A) Q1 = 20 and Q2 = 60 B) Q1 = 20 and Q2 = 20 C) Q1 = 60 and Q2 = 60 D) Q1 = 60 and Q2 = 20
Under the second phase of antitrust policy that began in 1914 in the U.S., the courts used _____ in order to judge the firms' actions
a. a rule of reason b. the rule of 72 c. a rule of thirds d. a per se rule e. the rule of law