Relative to a profit-maximizing monopolized industry that is producing 8,000 units of output at a price of $10 per unit, a competitively organized industry under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. 8,000; $10
B. less than 8,000; less than $10
C. less than 8,000; more than $10
D. more than 8,000; less than $10
Answer: D
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In the figure above, suppose the original budget line is BD. A fall in the price of a compact disc will
A) rotate the budget line to AD. B) rotate the budget line to CD. C) not move the budget line. D) result in a parallel leftward shift of the budget line.
A price elasticity of demand of -0.67 implies
a. Demand is inelastic b. Demand is elastic c. Demand is unitary elastic d. Demand is perfectly elastic
When more and more units of a variable factor are combined with constant amount of a fixed factor, such that the variable factor becomes abundant compared to the fixed factor, the output will eventually:
a. increase at an increasing rate. b. increase at a diminishing rate. c. increase at a constant rate. d. become constant. e. fall to zero.
The focal point of the Bretton Woods system was the:
a. Great Britain pound. b. institution of special drawing rights. c. U.S. dollar. d. gold reserve. e. management of commodity money.