Using the figure as a guide, which of the following is FALSE with respect to profit maximization and the monopolist?
A) A monopolist (like any other firm) will select an output rate at which marginal revenue is equal to marginal cost, at the intersection of the marginal revenue curve and the marginal cost curve.
B) The monopolist will produce quantity Qm and charge a price of Pm.
C) When compared to a competitive situation, consumers pay a higher price to the monopolist, and consequently are forced to purchase more of a product as price varies directly with quantity demanded.
D) Profits are the positive difference between total revenues and total costs.
C
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The opportunity cost of attending a college basketball game tonight would increase if: a. Your friend offers to pay you more for your ticket, because he really wants to go
b. Your favorite player on the teams is injured and will not play tonight. c. Your economics TA decides to offer a review session, for which attendance will count 10% of your course grade, at the same time as the game d. Either a. or c. occurs
According to the representative heuristic, people will be more likely to assume that Wendy is a lawyer if:
A. they plan to apply to law school at some point in the future. B. Wendy has many of the characteristics of a stereotypical lawyer. C. Wendy vehemently denies being a lawyer. D. there are few other lawyers living in the same geographic region.
Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.
A. An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded. B. Due to process innovations in computer chip manufacturing, the market supply of computers increased. C. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces. D. Anticipating that the benefits would outweigh costs involved, an undergraduate student purchases the course textbook.
When investors invest in something simply because everyone else is doing it, they are:
A. leveraging market performance for their own gain. B. suspect to "tulip mania." C. acting objectively on full information available in the market. D. following a "herd instinct."