Suppose a monopolist has zero marginal cost but positive recurring fixed costs. Then, if it is efficient to produce, the efficient quantity to produce occurs where demand crosses the horizontal (quantity) axis.
Answer the following statement true (T) or false (F)
True
Rationale: Efficiency always implies that MC=D unless the efficient quantity is zero.
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If household saving increases by $3 million, business saving decreases by $1 million, and the government budget deficit decreases by $2 million, then private saving ________ and public saving ________.
A. increases; decreases B. does not change; increases C. does not change; decreases D. increases; increases
The quantity of U.S. dollars supplied in the foreign exchange market is
A) the same as the quantity of for U.S. dollars demanded. B) negatively related to the exchange rate. C) fixed at any given exchange rate. D) unrelated to the exchange rate. E) positively related to the exchange rate.
Property rights motivate people to work harder and produce more economic pie than they would if property rights were not well defined
Indicate whether the statement is true or false
In this graph, which of following is completely above the market price?
a. marginal revenue
b. marginal cost
c. average total cost
d. average variable cost