A monopolist will not change its current behavior
A. unless it earns positive economic profits in the long run.
B. if it earns positive economic profits in the long run.
C. even if total revenue does not cover variable costs.
D. unless demand is greater than marginal revenue.
Answer: B
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Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her total cost?
A) $120 B) $140 C) $180 D) $60
Under current guidelines, the U.S. Department of Justice usually challenges
a. all mergers b. mergers in industries that would have a postmerger Herfindahl index greater than 1,800 c. mergers in industries that would have a postmerger Herfindahl index greater than 1,800 if the Herfindahl index increases by more than 100 points d. mergers in industries that would have a postmerger Herfindahl index greater than 1,000 e. mergers in industries that would have a postmerger Herfindahl index greater than 1,000 if the Herfindahl index increases by more than 100 points
Growth in real GDP per capita has:
A. slowed since the mid-nineteenth century compared to before. B. been steady over the course of human history. C. increased over the last 150 years only in the United States and Canada. D. been more rapid since the mid-nineteenth century than ever before.
Assume that in the short run a firm is producing 100 units of output, has average total costs of $100, and average fixed costs of $20. The firm's total variable cost at this output level is
A. $12,000. B. $120. C. $8,000. D. $80.