If a monopolist faced a downward sloping average cost curve that lies fully above market demand, he will not produce if he can only charge a single per-unit price, but it would also be inefficient for him to produce.
Answer the following statement true (T) or false (F)
False
Rationale: If AC does not lie too far above demand, it is still efficient for production to take place even though a monopolist who can only charge a single per-unit price will not produce. With constant marginal cost,, so long as the recurring fixed costs are not larger than consumer surplus at the output level at p=MC, it is efficient to produce.
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If the expected rate is correct, which investment will receive the higher return? A) The U.S. Bond B) The German Bond C) They will have the same return. D) This cannot be determined from the information given.
Which of the following is a characteristic of oligopoly?
A) easy entry and exit B) many firms C) strategic dependence D) none of the above
When the price of Italian wine rises, this change is reflected in the U.S. CPI but not in the U.S. GDP deflator
a. True b. False Indicate whether the statement is true or false
Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,000 per year. Based on this information, the income tax system is
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