Refer to the following graph.
A lazy monopolist is best described by earning area A and B in profits.
Answer the following statement true (T) or false (F)
False
A profit-maximizing monopolist would earn A + B. A lazy monopolist would earn less than A + B, perhaps area A.
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Suppose Joe purchases 10 lottery tickets per month when his monthly income is $200. Joe receives a raise at work, giving him an extra $40 per month in take-home pay, and Joe now purchases 15 lottery tickets per month. What is Joe's income elasticity of demand for lottery tickets?
a. 2.5 b. 1. c. 0.4. d. 0.25.
Total surplus in a market is consumer surplus minus producer surplus
a. True b. False Indicate whether the statement is true or false
In which case is velocity the highest?
a. the price level equals 4, the money supply equals 5,000 . and output equals 20,000. b. the price level equals 4, the money supply equals 20,000 and output equals 5,000. c. the price level equals 2, the money supply equals 5,000 . and output equals 20,000. d. the price level equals 2, the money supply equals 20,000 and output equals 5,000.
If the market does not allocate resources perfectly, the government can.
A. True B. False C. Uncertain