The figure above shows that monopoly is ________ because it produces a level of output at which ________
A) inefficient; marginal benefit equals marginal cost
B) efficient; marginal benefit equals marginal cost
C) efficient; marginal benefit exceeds marginal cost
D) inefficient; marginal benefit exceeds marginal cost
E) efficient; producer surplus is maximized
D
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Which of the following will increase the real interest rate?
A) an increase in household saving B) an increase in the demand for loanable funds C) an increase in the budget surplus D) an increase in the supply of loanable funds
Is a benevolent command economy likely to achieve greater efficiency than a purely competitive market system? Explain.
What will be an ideal response?
An example of a firm's fixed cost would be the
a. monthly rent it pays based on a multiple-year lease b. cost of employing labor c. quantity of inventory it accumulates d. raw materials used in production e. cost of shipping the goods it produces
Most economists use the aggregate demand and aggregate supply model primarily to analyze
a. short-run fluctuations in the economy. b. the effects of macroeconomic policy on the prices of individual goods. c. the long-run effects of international trade policies. d. productivity and economic growth.