Which statement is correct?
A. In the short run the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest
B. In the short run the pure monopolist will charge the highest price it can get for its product
C. Because of its ability to set its own price, the pure monopolist can increase price and increase its volume of sales simultaneously
D. Pure monopolists do not always realize positive profits, sometimes they suffer losses
D. Pure monopolists do not always realize positive profits, sometimes they suffer losses
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The unregulated, single-price monopoly shown in the figure above will produce where its demand
A) equals its MC curve. B) equals its ATC curve. C) is inelastic. D) is elastic.
Leontief used an input-output table in order to test the
A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above.
The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). If the price were $2.50, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $0
Suppose an American worker can make 100 chairs or catch 900 fish per day. On the other hand, a Chilean worker, can make 40 chairs or catch 400 fish per day. The United States has an absolute advantage in the production of both fish and chairs. This means that the United States:
A. should produce only chairs and trade with Chile to get fish. B. should produce only fish and trade with Chile to get chairs. C. should take advantage of Chile by trading with them. D. can produce more fish and chairs than Chile given the same amount of workers.