If a monopolist finds that at the present level of output marginal revenue exceeds marginal cost, the firm should:
a. shut down.
b. expand output.
c. maintain the current output.
d. reduce output (but still produce).
e. raise prices.
b
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Among the sources of economic inefficiency are all of the following EXCEPT
A) price regulations. B) rapid technological change. C) monopoly. D) taxes and subsidies.
The only type of business that faces unlimited liability is a sole proprietorship
Indicate whether the statement is true or false
In the above figure, if price is equal to P4, the firm will
A) earn positive economic profits. B) incur an economic loss. C) earn zero economic profits. D) shut down.
Among the following, which would not be considered part of the investment component of GDP?
A. Manufacturers’ equipment B. Buying corporate stock C. New houses D. Business structures