The profit-maximizing price of the monopolist compared to the perfectly competitive industry in the above figure are, respectively
A) P1 and P3.
B) P1 and P5.
C) P1 and P2.
D) P2 and P5.
A
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What mechanism assures that firms produce outputs that consumers actually desire?
A. governmental regulations on the mix of outputs B. altruism C. the desire for profit D. a desire to serve others without thought of reward E. All of the responses are correct.
Energy Star is a voluntary labeling program designed to identify and promote energy-efficient products to reduce greenhouse-gas emissions. This is an example of a ________ to solve an externality
A) Coasian approach B) Pigouvian approach C) command and control mechanism D) social enforcement mechanism
Lower interest rates cause the velocity of M1 to
A) turn negative. B) move erratically. C) increase. D) decline.
Opportunity cost exists because of
A) poverty. B) scarcity. C) greed. D) self-interest.