How does a per-unit subsidy affect the simple monopoly equilibrium?
a. The subsidy does not affect marginal cost and thus does not affect the monopoly equilibrium.
b. The subsidy lowers the price charged by the monopoly, but it also lowers social gain.
c. The subsidy increases the monopoly's profit but does not improve social gain.
d. The subsidy causes both monopoly output and social gain to increase.
d. The subsidy causes both monopoly output and social gain to increase.
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Which of the following is NOT an example of an opportunity cost?
A) By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. B) Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year. C) Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment. D) By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
Buying insurance and then never making a claim:
A. is considered by economists to be irrational behavior. B. means buying the insurance was a bad decision. C. does not mean buying the insurance was a bad decision. D. is a poor use of money.
Which of the following is not considered a factor that contributes to economic growth?
a. increased labor productivity b. increased infant mortality rates c. technological advances d. the migration of resources from areas of low productivity to areas of high productivity
Game Emporium offers lower prices to children than to adults. This is an example of: a. the inefficiency of monopoly. b. perfect competition
c. utility maximization. d. price discrimination.