In Figure 42.1, what is the price a regulated monopolist will charge (assuming the regulator strives for zero economic profit)? 
Figure 42.1
A. P1
B. P2
C. P3
D. P4
Answer: D
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What is the major difference between the classical model and the Keynesian model? Explain
What will be an ideal response?
Which of the following could explain an increase in labor supply to a particular labor market?
a. a reduced preference for this type of work b. a decrease in the size of the population c. an increase in the number of firms in the market d. a rightward shift of the marginal revenue product curve for labor at a typical firm e. a reduction in wage rates for similar types of work
When the government reduces my income tax by $0.30 for every $1.00 that I contribute to a charity, the government is effectively
a. alleviating the negative externalities that are associated with charitable giving. b. imposing a negative externality on those who do not pay income taxes. c. encouraging a private solution to a positive-externality problem. d. encouraging a private solution to a negative-externality problem.
Labor cost on an average accounts for about ________ percent of the total cost of production
a. 10 b. 30 c. 50 d. 70