A monopolist will always make a profit in the short run.
Answer the following statement true (T) or false (F)
False
A monopolist, like any other firm, makes a profit only if price exceeds average total cost.
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Which of the following best describes real-world U.S. markets?
a. In most markets, the firms face steep demand curves for their output. b. They combine characteristics of monopolistic competition, oligopoly, and monopoly. c. Effective competition exists in only about 25 percent of those markets. d. The dominant share of U.S. manufacturing output is produced by firms with the power to vary their prices over a wide range. e. Perfect competition is useful as a model for very few U.S. markets.
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. What are Wanda's total economic profits?
a. $150 b. $126 c. $96 d. $54
When analyzing the impact of government consumption and taxes in an open economy, we exclude transfer payments because:
a. they are not paid for by taxes. b. in the aggregate, they do not generate a change in total spending on goods and services. c. the sums are so large as to be incalculable. d. the sums are so small as to be insignificant.
If an economy begins to use its resources less efficiently, it will move
A. to a point farther away from its ppf. B. from a point along its ppf to a point outside its ppf. C. to a point closer to its ppf. D. from one point to another point along its ppf.