The supply curve for a monopoly is given by:

The supply curve for a monopoly is given by:
 a. the firm's marginal cost curve above the average variable cost curve.
  b. the one point on the demand curve that corresponds to the quantity for which price is equal to MC.
  c. the one point on the demand curve that corresponds to the quantity for which MR equals MC.
  d. the entire demand curve above the point where price is equal to average cost.

QUESTION 2

The cost of capital can be thought of as the rate of return required by investors in the firm's securities.
 a. true
  b. false

QUESTION 3

Most people buy insurance because they
 a. are risk lovers
  b. enjoy the gamble
  c. are risk neutral
  d. want to avoid gambles

QUESTION 4

A profit maximizing monopoly will produce that output for which:
 a. marginal revenue equals price.
  b. average cost is minimized.
  c. marginal cost is minimized.
  d. marginal cost equals marginal revenue.

QUESTION 5

GE Appliance Division believes which of the following warrants shifting assembly of appliances back from Shanghai to Louisville, KY:.
 a. The negotiation of a two-tiered wage structure for union labor,
  b. Faster innovations when product design engineers and assembly line team leaders are located in the same place,
  c. quicker delivery to retail dealers reduce inventory storage
  d. none of the above,
  e. all of the above.