If a monopolist draws a set of cost and revenue curves to represent the firm, he would show that
a. price intersects average total cost at the average total cost curve's minimum
b. price lies above the marginal revenue curve
c. marginal revenue at every output level equals zero
d. marginal cost at every output level equals zero
e. average total cost equals marginal cost
B
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Which of the following is NOT an example of price discrimination?
a. A restaurant sets a fixed cover charge in addition to menu charges. b. A phone company charges different rates to residential and business users. c. An electric company charges different rates to senior citizens and younger adults. d. An airline sets different fares for adults and children.
When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to
A) increased income inequality between rural and urban populations. B) a decreased Gini ratio. C) the Lorenz curve for income to move closer to the line of equality. D) a movement towards a bell-shaped distribution of income.
Ted quits his $60,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decision?
A) the value he attributes to the joy of parenting B) at least $60,000 C) zero, since he will no longer be earning a salary D) depends on the "going rate" for stay-at-home dads
U.S. imports are:
A. U.S. goods sold to foreigners. B. Foreign goods bought by Americans. C. U.S. goods sold to Americans. D. Foreign and U.S. goods sold to foreigners, but consumed in the U.S.