Which of the following can lead to a firm being more efficient that a market? A firm can have I. economies of scale. II. economies of scope. III. lower transactions costs

The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of

A) irrational behavior. B) a credit market imperfection. C) a vast banking conspiracy. D) the burden of public debt.

Suppose a monopolist's costs and revenues are as follows: ATC = $50; MC = $45; MR = $35; P = $55. The firm should

A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.