A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $3, and MR = $4. We can conclude that
A) economic profit could be increased by producing more.
B) economic profit could be increased by producing less.
C) economic profit cannot be increased.
D) the firm is earning $10 in economic profits.
A
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How is it that economists can claim that perfectly competitive markets give people what they want?
What will be an ideal response?
Goodyear Tire and Rubber Company and the United Steelworkers recently
A. ended a bitter strike. B. went to arbitration to avert a strike. C. agreed to major concessions including a wage freeze, job cuts, plant upgrades, and limited imports. D. agreed to large pay increases tied to productivity gains.
People tend to hold more money as the rate of inflation ___ and as the level of income ____.
A. rises; rises B. falls; falls C. rises; falls D. falls; rises
Identify two variables that shift the desired investment curve. Is desired investment negatively related or positively related to each of these variables?
What will be an ideal response?