The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?
A. price charged of $800 and quantity produced of 2
B. price charged of $900 and quantity produced of 1
C. price charged of $600 and quantity produced of 4
D. price charged of $700 and quantity produced of 3
Answer: D
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Which of the following is a cash transfer received from the government?
a. Medicaid b. Earned Income Tax Credit c. Food stamps d. Housing assistance e. Free education
Opportunity cost is the value of
A) the best (or most highly valued) forfeited alternative. B) the chosen alternative. C) a free good. D) all forfeited alternatives.
The income elasticity of demand is calculated as the
A. percentage change in quantity demanded divided by the percentage change in income. B. percentage change in quantity demanded multiplied by the percentage change in income. C. percentage change in income divided y the percentage change in price. D. percentage change in income divided by the percentage change in quantity demanded.
When supply falls and demand remains the same, equilibrium price _____ and equilibrium quantity ________.
A. rises; rises B. falls; falls C. falls; rises D. rises; falls