In contrast to a perfectly competitive firm, a monopolist operates in the long run
A. at a price higher than marginal cost.
B. with a profit equal to zero.
C. at an efficient level of output.
D. at the minimum point on its average total cost curve.
Answer: A
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Firms will continue to increase their purchase of factor inputs as long as ________
A) the marginal product of a given factor is greater than its real factor price B) the marginal cost of a given factor is lower than its marginal product C) their total revenues are greater than their total costs D) all of the above E) none of the above
If the price of a commodity is above marginal cost, then the economy will tend to
a. overproduce the item. b. underproduce the item. c. produce the optimal amount of the item. d. overproduce and underproduce the item cyclically.
Which of the following companies would gain from foreign currency depreciation?
a. companies which borrow in foreign currency. b. companies which export goods and services. c. companies which invest in the foreign equity markets. d. companies which buy bonds issued by the foreign government.
If Japanese tourists visit Disney World, what is the effect in the foreign exchange market?
a. It will increase demand for Japanese yen. b. It will decrease demand for Japanese yen. c. It will increase supply of Japanese yen. d. It will decrease supply of Japanese yen.