At a price of $20, the marginal revenue of a monopolist is $12. If the marginal cost of production is $10, what should the monopolist do in order to maximize profits?
A. Increase its price.
B. Decrease its price.
C. Keep its price at the same level.
D. There is not enough information to solve.
Answer: B
Economics
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The economy is currently operating at a point on its physical production possibilities frontier (physical PPF). It is
A) producing Natural Real GDP and operating below the natural unemployment rate. B) producing more than Natural Real GDP and operating above the natural unemployment rate. C) producing more than Natural Real GDP and operating below the natural unemployment rate. D) in long-run equilibrium.
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In the prisoner's dilemma, both players have an incentive to cheat, even though they would both be better off if they both cooperated.
a. true b. false
Economics