Exhibit 8-8 Profit maximizing for a monopolist
?
As shown in Exhibit 8-8, if the monopolist produces the profit-maximizing output, total revenue is the rectangular area:
A. OQAP1.
B. OQ2BP2.
C. OQ3CP3.
D. OQ2DP4.
Answer: D
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A 45-degree line on a graph with expenditures, E, on the vertical axis and production, Y, on the horizontal axis, represents
A) the line of disequilibrium levels of income. B) all possible equilibrium levels of production and expenditures. C) some of the equilibrium levels of production and expenditures. D) None of the above.
Which of the following market structures have market power?
A) oligopoly B) monopolistic competition C) perfect competition D) Both A and B.
Sometimes economists disagree because their values differ. Which of the following instances best reflects this source of disagreement?
a. One economist believes the North American Free Trade Agreement (NAFTA) has led to a loss of American jobs; another economist disputes this claim. b. One economist believes that when income taxes are cut, people will increase their spending; another economist believes that when income taxes are cut, people will increase their saving. c. One economist advises against increases in sales taxes because she thinks such increases are unfair to low-income people; another economist disputes the idea that increases in sales taxes are unfair to low-income people. d. One economist believes that, prior to the Civil War, slavery contributed to economic growth in the South; another economist believes that slavery held back the South's economic growth.
Considering the euro-U.S. dollar market, as a euro purchases a larger number of U.S. dollars, we should see:
A. the quantity of dollars supplied increase. B. a decrease in American exports to Europe. C. the quantity of dollars demanded decrease. D. an increase in the purchase of U.S. assets by Europeans.