The single-price monopolist shown in the above figure could increase its economic profit if
A) it became a price discriminator.
B) its costs of production decreased.
C) the demand for its good increased.
D) any or all the above were to occur.
Ques. 2A firm finds that it can produce several different goods at a lower average cost by using some of the same production facilities than it could if it produced each of the goods with separate production facilities. This firm is
A) gaining economies of scope.
B) gaining economies of team production.
C) gaining economies of scale.
D) incurring diseconomies of scale.
Ques. 3A rise in the minimum wage increases the demand for union labor because this policy change
A) lowers the wage rate paid to union labor.
B) raises the productivity of union labor.
C) lowers the cost of a substitute for union labor.
D) raises the cost of a substitute for union labor.
Ques. 4By human capital, economists mean
A) machines that replace humans.
B) machines engineered to avoid operator injury.
C) the accumulated skill and knowledge of humans.
D) humans who perform repetitive tasks.
Ques. 5To find the economy's marginal social benefit curve for a public good, we sum the individual marginal benefit curves horizontally. True or false? Explain.
What will be an ideal response?
Ques. 6Left shoes and right shoes are perfect complements. An indifference curve for left and right shoes is a line with
A) constant slope.
B) a 30-degree angle.
C) a 45-degree angle.
D) a 90-degree angle.
Ques. 7The deadweight loss incurred when the market in the above figure is a single-price monopoly rather than perfectly competitive is the area
A) cab.
B) fcd.
C) bed.
D) fae.
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