A monopolist restricts output and charges a higher price relative to what would occur if a market ...

A monopolist restricts output and charges a higher price relative to what would occur if a market were perfectly competitive.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Trade between industrial countries account for the majority of international trade.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

If a firm is minimizing the cost of producing its chosen level of output, the marginal product of the last dollar spent on each input should be equal.
  Indicate whether the statement is true or false

QUESTION 4

The opportunity cost of going to movies is the price of entry into the movies.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

A welfare loss occurs when a monopolist chooses not to produce units of output that are of greater marginal value to consumers than the marginal cost of producing them.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

The principle of comparative advantage states that a country should specialize in the production of those goods that have the highest opportunity costs.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

The cost of two inputs A and B are 100 and 200 per unit per month. A firm can afford to invest 10,000 per month on these inputs. The firm uses 30 units of A. Given a linear isocost such that the entire budget is exhausted, the firm will use 10 units of B.
  Indicate whether the statement is true or false

QUESTION 8

A firm's accounting profit is always equal to or greater than its economic profit.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 9

The welfare loss from monopoly is not really a loss to society as a whole, since it is just a transfer from consumers to producers.
 a. True
  b. False
  Indicate whether the statement is true or false