Answer the following statement true (T) or false (F)
1) If the XYZ Company can sell 4 units per week at $10 per unit and 5 units per week at $9 per
unit, the marginal revenue of the fifth unit is $5.
2) Because of their large-scale level of production, pure monopolists overallocate resources to
their industry by producing beyond the P = MC output.
3) Because of the ability to influence price, a pure monopolist can increase price and increase
volume of sales simultaneously.
4) Natural monopoly may result where products produce substantial network effects and can be
simultaneously consumed by a large number of consumers.
1) T
2) F
3) F
4) T
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Ted can study for his economics exam or go to a concert. He decides to study for his economics exam instead of going to the concert. The concert he will miss is Ted's ________ of studying for the exam
A) opportunity cost B) explicit cost C) implicit cost D) discretionary cost
The opportunity cost of holding money is the nominal interest rate
Indicate whether the statement is true or false