A single-price monopolist has the demand and marginal cost schedules given in the above table. What is the profit-maximizing level of output and price?
What will be an ideal response?
The profit-maximizing output is 3 units, because that is the quantity for which the marginal revenue equals the marginal cost. The price is $18 a unit.
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If you were to ask your employer for a raise, which of the following would be your most effective argument?
A) "My marginal product is greater than my current wage." B) "I am willing to work more hours each week." C) "Increases in my productivity have resulted in greater revenue and profits for your business." D) "I have a job offer at another firm that will pay me more than my current wage."
An expansionary monetary policy tends to ___ the U.S. dollar relative to foreign currencies and to ____ our balance of trade.
A. raise; help B. raise; hurt C. lower; help D. lower; hurt
Which phrase would be most characteristic of pure monopoly?
A. Single seller B. Efficient advertiser C. Price taker D. Close substitutes
For endangered species, the federal government
A) can only protect the animal on federal property because of common property issues. B) has the right to regulate activities on private land to save the species from extinction. C) turns over the protection of an endangered species to the state authorities where the species lives. D) will capture a pair of animals so that the species does not become extinct.