A monopoly sets a market price that is higher than the marginal cost of production. This fact implies that a monopoly's allocation of resources is:
a. unfair.
b. inefficient.
c. discriminatory.
d. excessive.
b
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080Who should specialize in knitting sweaters?
A. Alexandra B. Natalia C. Both Natalia and Alexandra D. Neither Natalia nor Alexandra
For a linear demand curve, where is the amount of total expenditures on a good maximized?
What will be an ideal response?
Which of the following is the most frequently used tool the Fed uses to control the supply of money?
a. The discount rate. b. The reserve requirements. c. Open market operations. d. The 30-year home-mortgage interest rate.
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. The expected value of John's earnings if he chooses to expand is:
A. $900,000 B. $140,000 C. $320,000 D. $230,000