If a monopolist wants to increase the amount it sells, it
A) will keep the price the same.
B) must lower the price on all units.
C) must accept lower profits.
D) must lower the cost of production.
Answer: B
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Which school of thought would be considered the most laissez-faire?
A. the mainstream view B. the monetarist view C. the self-correction view D. the real business cycle view
Exhibit 7-1 Production of pizza data Workers Pizzas 0 0 1 4 2 10 3 15 4 18 5 19 Exhibit 7-1 shows the change in the short-run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is:
A. decreases in labor productivity. B. increases in plant size. C. decreases in fixed cost. D. increased division of labor as additional workers are hired.
Refer to the following graph.
Demand and supply are initially D and S1, respectively. Which of the following best describes the effect of a $0.50 per pound tariff on Danish hams imported into the United States?
A. Supply shifts from S1 to S0; quantity sold declines to 60 thousand pounds and price paid by consumers rises to $2.25 a pound B. Neither supply nor demand shift, but price paid by consumers declines to $1.50 a pound while quantity sold remains at 80 thousand pounds C. Supply shifts from S1 to S2; quantity sold rises to 100 thousand pounds and price paid by consumers declines to $1.75 a pound D. Supply shifts from S1 to S0; quantity sold declines to 60 thousand pounds and price paid by consumers rises to $2.50 a pound
In recent years, per capita energy use in developed countries such as the United States has:
A. Increased B. Decreased C. Leveled off D. Increased and then decreased