In Figure 5.6, a monopolist would charge which price? 
A. The monopolist would shutdown, so no price would be charged.
B. P2
C. P3
D. P4
Answer: A
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Which of the following is a property of a good economic question?
A) A good economic question should never incorporate elements from disciplines other than economics. B) A good economic question should always have a single solution. C) A good economic question can be answered. D) A good economic question always addresses topics that are important to the whole society and not to an individual economic agent.
Which is always true at a firms profit maximizing rate of production
If my wage rate increases, utility maximization requires that my quantity of labor supplied
a. increase b. decrease c. increase if the income effect dominates the substitution effect d. increase if the substitution effect dominates the income effect e. increase if the substitution effect equals the income effect
Which of the following describes a situation in which, as the level of production of a good or service increases, the average cost of producing each individual unit decreases?
a. Arbitrage b. Economies of scale c. Privatization d. Deindustrialization