If a monopolist is producing the quantity at which marginal revenue equals marginal cost, it should
A) continue to produce this amount if it wants to maximize profits.
B) reduce output if it wants to maximize profits.
C) increase price and keep output unchanged if it wants to maximize profits.
D) increase output if it wants to maximize profits.
Answer: A
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Which of the following statements concerning the federal corporate income tax is true?
A) It is an efficient tax because it imposes a small excess burden relative to the tax revenue it raises. B) The corporate income tax is an example of the benefits-received principle. C) The incidence of the corporate income tax can be determined by using demand and supply analysis. D) Determining the incidence of the corporate income tax is complicated because it is not certain how corporations respond to the tax.
All games involve which of the following?
A. Rules B. Chance events C. Dice D. Cards
Andre, a wheat farmer, is deciding whether or not to add fertilizer to his crops. If he adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, Andre should add fertilizer if it costs less than
a. $12.50 per pound. b. $20 per pound. c. $80 per pound. d. $100 per pound.
Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in pizza when there is constant opportunity cost?
Figure 1.10
A. Fig. A B. Fig. B C. Fig. C D. Fig. D