Some companies subject their applicants to extensive tests. Why?
A) to reduce the informational asymmetry between the firm and the applicant
B) to screen the applicant to avoid the problem of adverse selection
C) to gather more information about the applicant
D) All of the above.
D
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Suppose that a pure monopoly calculates that at its present output level, marginal revenue is $1 and marginal cost is $2. The monopoly could maximize profits or minimize losses by ________.
A. increasing price and decreasing output B. increasing price and increasing output C. leaving price unchanged and decreasing output D. decreasing price and leaving output unchanged
A corporation uses __________ as its Federal Tax ID number.
a. the owner's social security number b. an EIN number c. business operating license number d. none of these
Price discrimination does not allow a producer to
A. Obtain greater total revenue. B. Obtain higher profits. C. Designate a point above the market demand curve as the new equilibrium. D. Charge both higher and lower prices.
Short-run costs that depend on the level of output are
A. total fixed cost only. B. total costs only. C. total variable costs only. D. both total variable costs and total costs.