Explain why a monopolist has no supply curve
What will be an ideal response?
By definition, a supply curve shows the amount a firm produces in response to a given price. The monopoly sets price, and, therefore, does not respond to a given price. Alternatively, the monopoly always chooses a price, quantity combination along the demand curve.
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President Obama's stimulus package in 2009 included
A) new tax cuts but no change in government spending. B) tax increases and decreases in government spending. C) increases in government spending but no change in taxes. D) new tax cuts and increases in government spending.
A room heater is a ________
A) club good because it is excludable but non-rival in consumption B) club good because it is non-excludable but rival in consumption C) public good because it is non-excludable and non-rival in consumption D) private good because it is excludable and rival in consumption
In the language of international trade, "dumping" is the act of
A. producing goods without consideration of their environmental consequences. B. selling goods cheaper than the competition. C. selling goods below cost so as to drive competitors out of business. D. selling goods of substandard quality.
For this question, assume that the production function exhibits the same characteristics as those presented in the textbook. Based on these characteristics (i.e., assumptions), successive and equal increases in capital per worker will cause which of the following to occur?
A) Output per worker will decline. B) Output per worker will not change. C) Output per worker will increase by a constant amount. D) Output per worker will increase by a larger amount. E) none of the above