Lazy monopolists are characterized by the tendency to:
A. maximize profits at the cost of losing market share.
B. minimize losses so that the dividends of shareholders are maximized.
C. pay too much to protect their monopoly positions.
D. earn enough profits to keep their shareholders happy without trying too hard to hold costs down.
Answer: D
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One way a company can cover its costs and, at the same time, obey a marginal cost pricing rule is by
A) choosing output levels according to the profit-maximizing rule. B) using price discrimination. C) increasing production. D) decreasing production. E) decreasing its marginal cost but not changing its average total cost.
The Coase theorem
A. shows that under certain conditions the market can internalize externalities. B. states that economic units should specialize in the production of those goods in which they have a comparative advantage. C. asserts that the firm should produce that output at which marginal cost is equal to marginal revenue. D. holds that the firm should produce that output at which marginal factor cost is equal to marginal revenue product.
Saving is positive for all levels of disposable income
A) above zero. B) above where the consumption line intersects the 45-degree line. C) below where the consumption line intersects the 45-degree line. D) above where the consumption function intersects the vertical axis. E) above autonomous consumption.
Which of the following is true in ski-towns such as Crested Butte, Colorado, and Whistler, British Columbia during the peak winter ski season as compared to the months of May and June?
a. Demand for motel rooms is higher. b. Demand for motel rooms is lower. c. The price of motel rooms will tend to be lower. d. There is a surplus of motel rooms.