For a monopolist, at the profit-maximizing level of output:
A. price is greater than average revenue.
B. average revenue is greater than marginal cost.
C. marginal cost is greater than price.
D. total revenue is equal to total cost.
B. average revenue is greater than marginal cost.
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Refer to Figure 12-11. Suppose the prevailing price is $20 and the firm is currently producing 1,350 units. In the long-run equilibrium
A) there will be fewer firms in the industry and total industry output decreases. B) there will be fewer firms in the industry but total industry output increases. C) there will be more firms in the industry and total industry output remains constant. D) there will be more firms in the industry and total industry output increases.
Which of the following is an example of a normative question?
a. When will the government increase spending on education? b. What effect will the government’s increased spending on education have? c. How much will the government increase spending for education? d. Should the government increase spending for education?
If the demand price for the 2,000th unit of a good is $10, then
A. total consumer surplus for 2,000 units is $10,000. B. the economic value of the 2,000th unit is $10. C. consumer surplus for the 2,000th unit can be computed by subtracting the supply price for the 2,000th unit. D. the net gain to society from the production and consumption of the 2,000th unit can be computed by subtracting the supply price from $10. E. Both b and d
A decrease in disposable income will _____
Fill in the blank(s) with the appropriate word(s).