Exhibit 8-7 Monopolist
?
According to the information provided in Exhibit 8-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $6, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit maximizing price.
B. Increase price and decrease output.
C. Decrease price and increase output.
D. Increase output and hold price constant.
Answer: B
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Refer to the graph above. Points A, B, and C represent ________, ________, and ________, respectively
A) equilibrium wage rate after migration from home to foreign has occurred; the wage rate in foreign before migration; the wage rate in home before migration B) equilibrium wage rate after migration from foreign to home has occurred; the wage rate in home before migration; the wage rate in foreign before migration C) the wage rate in home before migration; the wage rate in home after migration; the wage rate in foreign after migration D) the global wage rate before migration; the wage rate in foreign after migration; the wage rate in home after migration E) the global wage rate before migration; the wage rate in home after migration; the wage rate in foreign after migration
Economic analysis that focuses on the economy as a whole is called
a. macroeconomics b. microeconomics c. positive economics d. normative economics e. macrometrics
If opportunity costs are constant, then
A. factors of production must not be fully employed. B. the production possibilities curve is a negatively sloped straight line. C. the production possibilities curve bows outward. D. the production possibilities curve does not exist.
Assume that the economy is at a long run equilibrium and oil prices rise. As a result, the ________ shifts ________
A) AD; rightward B) AD; leftward C) SAS; rightward D) SAS; leftward