When marginal revenue is equal to marginal cost, the monopolist
A. should increase output to maximize profits.
B. will maximize profits or minimize losses.
C. will produce where price = ATC.
B. will maximize profits or minimize losses.
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Suppose than an economy has output Y = A , that Y equals $19 trillion, capital K is $27 trillion, and labor L is 125 million workers. Given this information, what is the closest approximation of total factor productivity A?
A) less than 0.01 B) around 0.25 C) roughly 0.33 D) close to 0.4 E) exactly 144
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. Real GDP falls, and nominal value of the domestic currency rises. b. Real GDP falls, and nominal value of the domestic currency remains the same. c. Real GDP rises, and nominal value of the domestic currency rises. d. Real GDP falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
The field of economics that would be most concerned with a recent fall in interest rates is:
A. marginal economics. B. macroeconomics. C. economic naturalism. D. microeconomics.
When does the free-rider problem arise?
A. when policymakers ignore opportunity costs in making decisions B. when a firm does not have to advertise, because its customers recommend the product to their friends C. when someone who benefits from a good does not have to contribute to paying for it D. when production of a good generates pollution