In monopoly, _____
a. the firm's demand curve is the market demand curve for the product
b. the marginal revenue is less than the price
c. the firm can set its price anywhere but will enhance its profits by raising or lowering the price, depending on the circumstances
d. all of these
Ans: c. the firm can set its price anywhere but will enhance its profits by raising or lowering the price, depending on the circumstances
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An efficient allocation of productive inputs requires that:
a. each output has the same rate of technical substitution among inputs used. b. each output has the same marginal rate of substitution for consumers. c. each pair of outputs has the same rate of product transformation. d. each individual has the same marginal rate of substitution between outputs.
Describe any three price indices published by the Bureau of Labor Statistics that are not based on baskets of consumer goods
A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500th unit of output is $14.50; and the average total cost of producing the 500th unit of output is $9.50 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
Political structure, or the process by which laws become enacted:
A. has one feature that is present in every government structure in existence. B. affects the outcome of policy. C. has no effect on policy created. D. is virtually the same everywhere.