What should a profit maximizing monopolist do if she is currently producing where MC < MR?
a. Increase output until MC = MR.
b. Decrease output until MC = MR.
c. Shut down in the long run.
d. Keep producing at this level.
e. Operate only in the short run.
A
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The price elasticity of demand for a printer is estimated to be 1 no matter what the price or quantity demanded. An increase in price by 10% will
a. Increase quantity demanded by 10% b. Decrease quantity demanded by 10% c. Increase demand by 10% d. Decrease demand by 10%
If a union insists that the employer hire only union members, this is called a
a. union shop b. monopsony c. monopoly d. open shop e. closed shop
Refer to the graph below. From the economists' perspective, which is the independent variable and which is the dependent variable?
A. Price is the independent variable and quantity demanded is the dependent variable
B. Price is the dependent variable and quantity demanded is the independent variable
C. Both price and quantity demanded are independent variables
D. Both price and quantity demanded are dependent variables
According to the law of demand, quantity demanded decreases as ________, ceteris paribus.
A. prices fall B. demand decreases C. demand increases D. prices rise