Shellee heads up a company that has a monopoly on a solar battery technology due to a patent. Shellee wants to raise the price by 50% to increase revenue by 50%. What is she forgetting?
a. When monopolists raises prices, they are breaking the law.
b. When monopolists raise prices, demand falls.
c. Monopolists cannot change revenue by changing prices.
d. Monopolists do not get to price their own products.
b. When monopolists raise prices, demand falls.
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A baseball player who has signed a long-term contract with his club and then constantly says he is injured and cannot play is an example of ________
A) the principal-agent problem B) marginal returns to work C) the law of diminishing returns D) inefficient hiring practices
When the rate of interest (or price of capital) increases, the
a. quantity demanded of loanable funds by the firm will decrease b. quantity demanded of loanable funds by the firm will increase c. firm's MRP of capital increases d. firm's MPP of capital increases e. firm's MRP of capital decreases
Consumers spend a lot more time searching for good bargains during recessions because:
A. goods are more expensive during recessions and hence expected benefits of a search are higher and in recessions, many individuals are out of work, which lowers their opportunity cost of time. B. in recessions, many individuals are out of work, which lowers their opportunity cost of time. C. goods are more expensive during recessions and hence expected benefits of a search are higher. D. None of the statements is correct.
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. Which of the following statements is TRUE about the effect the Medicare subsidy has had on the consumption of medical services?
A. The amount of medical services provided has increased from Qd to QM as a result of the subsidy. B. The amount of medical services provided has decreased from Q0 to Qd as a result of the subsidy. C. The amount of medical services provided has remained unchanged as a result of the subsidy. D. The amount of medical services provided has increased from Q0 to QM as a result of the subsidy.