Based on the graph showing equilibrium output and price for a monopolist, if a monopolist is producing at Q2, it should ______.
a. reduce output to 0
b. reduce output to Q1
c. increase output to Q3
d. reduce output to QM
d. reduce output to QM
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Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5. B) 0.75. C) 1.33. D) 2.00.
In Figure 10-5 above, suppose that the population growth rate declines. This causes a movement of the steady-state point such as from points
A) A to B. B) D to B. C) D to C. D) A to C. E) A to D.
A profit-maximizing firm will hire an additional unit of a resource as long as the
a. marginal product of the resource is greater than the marginal resource cost b. marginal product of the resource is less than the marginal resource cost c. marginal revenue product of the resource is greater than the marginal resource cost d. marginal revenue product of the resource is less than the marginal resource cost e. price of the resource is less than the marginal resource cost
When a firm acquires another,
A) the acquired firm suffers a winner's curse. B) the acquiring firm may suffer a winner's curse. C) neither firm suffers from a winner's curse. D) a winner's curse only applies if a patent is lost.