A profit-maximizing monopolist will receive zero profits when
A) the average total cost curve lies above the demand curve for all possible rates of output.
B) the average total cost curve is tangent to the demand curve at the profit maximizing price.
C) marginal revenue, marginal cost, and average total cost are all equal.
D) a second firm enters the industry.
Answer: B
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Economists define risk as
A) the difference between the interest rate borrowers pay and the interest rate lenders receive. B) the chance that the value of financial assets will change from what you expect. C) the ease with which an asset can be exchanged for other assets or for goods and services. D) the difference between the return on common stock and the return on corporate bonds.
Special-interest programs are highly attractive to vote-seeking politicians because
a. these programs are highly efficient, and therefore, they tend to enhance the general welfare of the populace. b. members of special interest groups favoring these programs are less likely to vote than the taxpayers who pay for them. c. low-income recipients are the primary beneficiaries of special-interest programs. d. members of special interest groups favoring these programs feel strongly about them while most other voters are rationally uninformed about them.
Refer to the data. What quantities of X and Y should be purchased to maximize utility?
Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18.
A. 2 of X and 1 of Y
B. 4 of X and 5 of Y
C. 2 of X and 5 of Y
D. 2 of X and 6 of Y
Earnings received from wealth:
A. Contribute to income inequality B. Are the major source of income for families C. Are becoming more equal in the society D. Are primarily the result of advanced education