Which of the following is true at the output level where P=MC?
A) The monopolist is maximizing profit.
B) The monopolist is not maximizing profit and should increase output.
C) The monopolist is not maximizing profit and should decrease output.
D) The monopolist is earning a positive profit.
C
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Which of the following would cause an increase in aggregate demand (AD)?
A) an increase in interest rates B) a decrease in taxes C) a decrease in price levels D) a rise in the foreign exchange value of the dollar
A good salesperson can sell $200,000 worth of goods, while a poor one can sell only a smaller amount worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $20,000 or a 20% commission. Assume risk-neutral salespersons and no opportunistic behavior. Given that the firm wants to distinguish a prospective good salesperson from a poor one, what should be the sales amount of a poor salesperson? A) more than $150,000 B) less than $100,000 C) more than $100,000 D) $100,000
One common example of a price ceiling is rent control
a. True b. False Indicate whether the statement is true or false
New houses count as consumer durables.
Answer the following statement true (T) or false (F)