If a monopolist is producing a level of output where MR is less than MC, then it should
A. Increase its output.
B. Lower its price.
C. Lower its output.
D. Shift its marginal cost curve upward.
Answer: C
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When supply decreases and the supply curve shifts to the left, equilibrium price ________ and equilibrium quantity ________
A) increases; decreases B) decreases; increases C) decreases; decreases D) increases; increases
The elimination of import restrictions will
A. Redistribute income from import-competing industries to export industries. B. Redistribute income from domestic to foreign producers. C. Alter the mix of output from export industries to import-competing industries. D. Alter the mix of output from export industries toward domestic industries.
The law of increasing opportunity costs states that as
What will be an ideal response?
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If Ohio Edison is forced to produce the efficient level of electricity (instead of the monopoly level), ________ equals area BEC.
A. the net social gain B. welfare loss C. producer surplus D. consumer surplus