A monopoly sells 5 units of output at $20. If the MR of the 6th unit is $14, then the price of the 6th unit is
A) also $14.
B) $17.
C) greater than $20.
D) $19.
D
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Answer the following statement(s) true (T) or false (F)
1. Adverse selection can cause insurance companies to limit the amount of insurance they provide to people who are "poor risks." 2. Most economists believe adverse selection played no role in the 2008 financial crisis. 3. In the moral hazard problem, people incur additional risks as a result of being insured. 4. In the principal-agent problem, the principal is the person performing work and the agent is the one for whom the work is being done. 5. If employers had to pay higher than equilibrium wages to their workers, then workers would be better off but employers would be worse off.
The relationship between personal and corporate income taxes rates is significant because _____
a. high-income taxpayers can choose between realizing income as personal or corporate b. low-income taxpayers purchase the majority of goods produced by corporations c. middle-income taxpayers equalize their income between corporate and personal income taxes d. there is no relationship
Suppose that 19th-century politicians had succeeded in their attempt to impose a "single tax"-a tax on suppliers of land (i.e., landlords). Most of the economic burden of the tax would have been borne by
a. renters, because the demand for land is generally less elastic than its supply. b. renters, because the demand for land is generally more elastic than its supply. c. landlords, because the demand for land is generally less elastic than its supply. d. landlords, because the demand for land is generally more elastic than its supply.
Is a Nash equilibrium stable? Explain
What will be an ideal response?