The profit-maximizing price and quantity established by the unregulated monopolist in the above figure are
A. Q1 units of output and a price of P5.
B. Q1 units of output and a price of P1.
C. Q3 units of output and a price of P3.
D. Q4 units of output and a price of P4.
Answer: B
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If the marginal social cost of a good equals the marginal private cost of the good, then the marginal external cost of the good
A) is zero. B) equals the marginal social cost. C) equals the marginal social benefit. D) equals the marginal private benefit.
Cooperation is possible in a ________ game if both firms ________ know the final period of the game.
A) one-shot; do not B) finitely repeated; do C) one-shot; do D) finitely repeated; do not
Some of the nation's best minds are occupied with devising schemes to avoid taxes and to transfer income to favored groups at the expense of market efficiency. This is called _____
A) hedging. B) pork-barrel spending. C) rent seeking. D) skimming. E) profiteering.
Medicaid is a health insurance program for the aged and certain disabled persons.
Answer the following statement true (T) or false (F)