Comment on the following: A monopolist is a firm that can raise its price without experiencing a decrease in its total revenue.
What will be an ideal response?
Ques. 2Assume that a very unusual production process involves increasing marginal productivity that appears to have no end. What would the total productivity function look like? Comment on the likelihood of such a function in the real world.
What will be an ideal response?
Ques. 3For a common resource, the marginal private benefit of the resource is greater than the marginal social benefit.
Indicate whether the statement is true or false
Ques. 4What does the marginal revenue equal when a monopoly's total revenue is maximized? What is the elasticity of demand when the total revenue is maximized?
What will be an ideal response?
Ques. 5Assume the government is concerned about the high price of Atlantic Red Crab and announces that it is going to shorten the fishing season to one week.
What impact will this have on the quantity of crab caught and the price of crab? Will this actually result in greater protection of the Atlantic Red Crab?
Ques. 6The problem of the commons is the absence of incentives to prevent overuse and depletion of the common resource.
Indicate whether the statement is true or false
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