A single price monopoly that faces the demand curve P = 10 - Q and profit maximizes by reducing price from $6 to $5 must have a marginal cost of 
A. 10.
B. 6.
C. 1.
D. 5.
Answer: C
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The demand curve in monopolistic competition slopes downward because of:
a. strong barriers to entry. b. product differentiation. c. the small number of firms. d. government regulation. e. the similarities of the businesses.
Which of the following best describes private enterprise?
a. The means of production (resources and businesses) are owned and operated by government. b. The means of production (resources and businesses) are owned and operated by private individuals or groups of private individuals. c. Economic decisions are determined by individuals. d. Economic decisions are determined by government.
Bank failures tend to occur most often during periods of:
A. recessions when many borrowers have a difficult time repaying loans and lending activity slows. B. stock market run ups when, like many companies, banks tend to be overvalued. C. wars and other civil unrest. D. high inflation when the fixed rate loans of many banks cause their real returns to decrease.
Resources devoted to complying with the tax laws are a type of deadweight loss
a. True b. False Indicate whether the statement is true or false