Unlike a perfectly competitive firm, a monopolist
A. can choose how much output to produce.
B. cannot increase production without affecting the price he or she receives for his or her good.
C. usually sells in a market with a downward-sloping demand curve.
D. has an MR from increasing output by one unit equal to the price of his or her product.
Answer: B
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In an English auction, the winner pays a price equal to ________
A) the value of the highest bid B) the value of the lowest bid C) his value for the good D) the value of the second-highest bid
Marginal cost eventually increases because
A) of the law of diminishing returns. B) eventually each additional worker produces a successively smaller addition to output. C) the marginal product of the variable input eventually falls. D) All of the above answers are correct.
An allocation satisfies the output efficiency condition if:
A. for every pair of goods, every input's marginal product equals the marginal rate of transformation. B. for every pair of goods, every consumer's marginal rate of substitution equals the marginal rate of transformation. C. only applies for firms that produce the same product. D. only applies for consumers that consume the same goods.
When the value of a payment is adjusted in proportion to changes in the CPI, economists refer to that as
a. nominalization b. realization c. indexation d. stabilization e. depreciation