A monopoly firm is charging the price the market will bear at a level of output where MC equals $6 and is increasing, MR equals $9, and average variable cost equals $5 . To maximize profits, the firm should:
a. increase both output and price

Which of the following countries provides the best example of a successful import substitution development strategy?

(a) Chile. (b) Taiwan. (c) Argentina. (d) Botswana.

Government failure refers to

a. a mismatch between employer incentives and firm objectives b. the failure of government to provide an efficient quantity of public goods c. the inability of firms to produce output efficiently d. the overabundance of competitors with government in production e. the under-allocation of tax revenues