Relative to a competitive market equilibrium, the profit-maximizing quantity chosen by a monopolist will result in a deadweight loss because:
A. the monopolist will produce at a quantity lower than the competitive equilibrium.
B. the monopolist will produce at a quantity higher than the competitive equilibrium.
C. the monopolist will charge a price lower than the competitive equilibrium.
D. the monopolist will keep producing at a quantity even though the MR < MC.
Answer: A
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For most goods and services, the burden of a tax is on the sellers
Indicate whether the statement is true or false
The price elasticity of ______ measures how responsive the quantity sellers are willing and able to sell is to changes in price.
a. income b. supply c. equilibrium d. demand
Refer to the information provided in Scenario 22.3 below to answer the question(s) that follow.SCENARIO 22.3: Consider a local high school that has 300 sophomores considered to be at-risk students. A privately-sponsored after-school sports program has been established to try to help at-risk students succeed in finishing high school. The local government wants to know if this program reduces the students' probability of dropping out of high school before the end of their junior year, and decides to randomly sample 150 of the 300 at-risk sophomores and invite them to attend the after-school program at no cost. 100 students accept the invitation, and by the end of their junior year, the drop-out percentage of the 100 students who attended the program was lower than the drop-out percentage of
the 200 students who did not attend the program. Refer to Scenario 22.3. Based on the information in the scenario, can you conclude that the after-school program had a positive effect? A. Yes, because the drop-out percentage for those students who attended the program was lower than the drop-out percentage for those students who did not attend the program. B. Yes, because the 150 students offered the program were a random sample. C. No, because less than half of the at-risk students attended the program. D. No, because we cannot assume the 100 students who accepted the offer were a random sample.
Calculate MPS.
