If a monopoly firm sells more than one unit, marginal revenue will then be:
A. equal to the price.
B. less than the price.
C. greater than the price.
D. equal to market demand.
Answer: B. less than the price.
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Repeated games can lead to tacit collusion
a. True b. False Indicate whether the statement is true or false
Some nations benefit absolutely from abandoning their monetary policy and control of their currency because:
A) their monetary policy permitted high inflation under pressure from political interests that would not be present under a common currency arrangement. B) they did not have sufficient currency in their own nation to support a higher GDP. C) they had a strong currency, which hurt their exports. D) the central bank would keep the money supply under tight control, which is not good for economic expansion and jobs.
Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25 percent of jobs offering $30,000 per year, 50 percent offering $40,000 per year and 25 percent offering $50,000 per year and that in all other respects, the jobs are equally satisfying. Assume that in this market, a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer. Moe has just received a job offer that pays $40,000 per year. Moe should:
A. reject the offer if he is risk averse. B. only accept the offer if he is risk-neutral. C. reject the offer regardless of his preference for risk. D. accept the offer if he is risk averse.
Which of the following benefits comes from specialization?
a. Prices for scarce resources are lowered. b. The best use is made of limited resources. c. Opportunity costs are lowered for workers. d. Workers are inspired to reach their potential.