The monopolist determines the price and quantity combination that maximizes short-run profits by
A) finding the quantity at which marginal cost and marginal revenue are equal and then using the demand curve to find price.
B) determining the price by finding the highest price at which sales can be made and then using the demand curve to find the appropriate quantity.
C) finding the point at which marginal revenue and demand intersect. This gives the price and quantity that maximizes profits.
D) finding the quantity at which average revenue and average total cost are furthest apart.
Answer: A
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It is difficult to determine expected real rates of interest because
A) we never know exactly what inflation rates people anticipate. B) we cannot measure the nominal interest rate. C) the inflation rate is a subjective measurement. D) we cannot measure the inflation rate.
The Fed's tools are also known as
A) goals. B) intermediate targets. C) instruments. D) derivatives.
Which of the following countries receives the largest share of U.S. exports?
a. Mexico b. Germany c. Japan d. Canada e. United Kingdom
The text quotes W. Edwards Deming as saying that "pay is not a motivator." The history of incentive pay plans shows that:
A. there is a mixed record in success of incentive pay plans. B. they rarely work. C. incentives work in every instance. D. incentives must be non-monetary to work.