The monopoly maximizes profit by setting
A) price equal to marginal cost.
B) price equal to marginal revenue.
C) marginal revenue equal to marginal cost.
D) marginal revenue equal to zero.
C
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Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be used to purchase government bonds earning 5%, then how much money should Jan's hold?
A. $6,000 B. $10,000 C. $8,000 D. $4,000
Why has M2 grown more quickly than M1 in recent decades?
A) Currency in circulation has declined. B) People own more shares of stock than in the past. C) The amount of funds in CDs and money market mutual funds shares has grown faster than currency or checking deposits. D) Most people use debit cards instead of checking accounts.
The AFL was made up mostly of __________ unions prior to 1935.
A. craft B. industrial C. financial D. None of the statements are true.
The long run is defined as:
A. the horizon in which there are both fixed and variable factors of production. B. the horizon in which the manager can adjust all factors of production. C. the horizon in which there are only fixed factors of production. D. greater than one year.