The most profitable price for a monopolist is
A) the price at which demand is unit elastic.
B) a price that maximizes the quantity sold.
C) the highest price a consumer is willing to pay for the monopolist's product.
D) the price for which marginal revenue equals marginal cost.
D
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In the automobile insurance market, adverse selection occurs when
A) drivers with greater risks buy a policy with large deductibles. B) drivers with greater risks buy a policy with no deductibles. C) uninsured drivers drive recklessly. D) insured drivers drive recklessly.
The opportunity cost of an action is: a. the value of the best foregone alternative
b. the difference between the benefits that result and the expenses incurred as a result of the action. c. the same as the expected benefit of the action. d. the same for everyone who undertakes the action.