An important economic problem associated with pure monopoly is that, at the profit- maximizing outputs, resources are:
A. overallocated because price exceeds marginal cost.
B. overallocated because marginal cost exceeds price.
C. underallocated because price exceeds marginal cost.
D. underallocated because marginal cost exceeds price.
Answer: C
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Your local farmer has many competitors and exists in a market structure known as perfect competition
This means that price is determined outside of the individual farmer's ability to charge a price higher than the going market for a bushel of wheat, hence the farmer is A) a price maker and can therefore charge different customers different prices. B) always able to price produce above the competition and earn a larger profit. C) never able to determine any prices he charges for anything, such as soybeans. D) a price taker and cannot affect the market price of wheat.
To prevent inflation caused by holding so much foreign currency, China must
A. Allow the yuan to float with supply and demand and cause it to depreciate. B. Allow the dollar to float. C. Allow a floating yuan to cause it to appreciate. D. Fix its exchange rate lower.
In 2017, destruction to U.S. gasoline refineries was caused by back-to-back storms along the U.S. Gulf Coast-Hurricane Harvey and Hurricane Irma In one week, the average price of a gallon of gasoline in the United States increased by about 20 cents. Which of the following best explains why these events pushed up the price of gasoline?
A. The supply curve for gasoline shifted to the right along the demand curve for gasoline. B. The demand curve for gasoline shifted to the right along the supply curve for gasoline. C. The supply curve for gasoline shifted to the left along the demand curve for gasoline. D. The demand curve for gasoline shifted to the left along the supply curve for gasoline.
What ways do firms have to finance R&D activities? What is the cost of these forms of funding?
What will be an ideal response?