Refer to the following graph. 
The additional profit that might be achieved by monitoring a lazy monopolist with ATC (X-inefficient) is equal to the area of rectangle:
A. A minus rectangle B minus the cost of monitoring.
B. A plus rectangle B minus the cost of monitoring.
C. A minus the cost of monitoring.
D. B minus the cost of monitoring.
Answer: D
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If 1 - b = WN/PY where W is the nominal wage rate, N is the quantity of labor input, and PY is total income in nominal terms, then labor's share of national income shrinks if
A) (w - p) > (y - n). B) (w - p) < (y - n). C) (w - n) > (y - p). D) (w - n) < (y - p).
Refer to the table below. If the senior manager learns that either a Good or Fair market will exist when the drug is introduced to the market, which drug should the senior manager not pursue?
The senior manager of Rx Pharmaceuticals needs to decide which of three drugs the company should consider developing. The estimated profit for each of the drugs differs depending on the market conditions when the respective drugs are introduced to the market. The above table summarizes the estimated profit for each drug under each of the three market conditions; Good, Fair, and Poor.
A) Drug X
B) Drug Z
C) Drug Y
D) all of the drugs
Economics is as much art as it is science
a. True b. False
Cartels in the United States are
a. legal if price is competitively determined. b. legal if all firms in the industry agree to the terms of the cartel. c. legal if all conditions of the cartel are made public. d. illegal.