Suppose a monopolist's costs and revenues are as follows: ATC = $50.00; MC = $35.00; MR = $45.00; P = $55.00. The firm should
A) increase output and decrease price.
B) decrease output and increase price.
C) not change output or price.
D) shut down.
A
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One of the changes in the welfare system of the United States that occurred in 1996 was a move to block grants for states. What advantage(s) might a block grant system allow?
What will be an ideal response?
The graph of average fixed cost is a horizontal line
a. True b. False
Juanita has just started a business and is using her personal car to deliver goods. The use of her car is an example of
A) an explicit cost to the business. B) an implicit cost to the business. C) financial capital. D) interest.
Using Figure 48.1, modeling the attacks of September 11, 2001, you would show the aggregate supply shock by using 
Figure 48.1
A. Panel 1 only with a shift from ADA to ADB. B. Panel 2 only with a shift from ASB to ASA. C. Panel 1 only with a shift from ADB to ADA. D. Panel 1 to model the aggregate demand shock (ADB to ADA) and Panel 2 to model the aggregate supply shock (ASB to ASA).