Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
A. charge a lower price than the perfectly competitive firm.
B. charge a higher price than the perfectly competitive firm.
C. charge the same price as the perfectly competitive firm.
D. refuse to operate in the short run unless an economic profit could be made.
Answer: B
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According to new growth theorists, more technological improvements can be brought about by
A) the government taking a more active role in regulating industries. B) government policies that lead to increases in human capital. C) tougher immigration laws. D) a government policy that encourages increased consumption.
Using the compensating differential approach, the value of a life is calculated as
A) the compensating differential multiplied by the increased chance of death. B) the sum of the compensating differential and the increased chance of death. C) the compensating differential divided by the increased chance of death. D) the difference between the compensating differential and the increased chance of death.