For a monopolist, profit is maximized at the level of output where MR = MC.
Answer the following statement true (T) or false (F)
True
A firm maximizes total profit at the output rate where MR is equal to MC. If MC is less than MR, the firm can increase profits by producing more. If MC exceeds MR, the firm should reduce output.
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The tax incidence on buyers is higher if ________
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Today, bank runs are
a. uncommon because of the high reserve requirement. b. uncommon because of FDIC deposit insurance. c. common because of the low reserve requirement. d. common because the FDIC is nearly bankrupt.
International trade
A. raises the standard of living in all trading countries. B. lowers the standard of living in all trading countries. C. leaves the standard of living unchanged. D. raises the standard of living for importing countries and lowers it for exporting countries.
If a minimum wage is established, a monopsonist faces
A. an upward sloping supply of labor at all quantities of labor. B. a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage. C. a horizontal supply of labor at the minimum wage and the upward sloping portion of the labor supply curve above minimum wage. D. a downward sloping supply of labor at all quantities of labor.