The field of political economy
a. applies the methods of political science to microeconomics.
b. applies the methods of political science to macroeconomics.
c. is relevant to the issue of how active government should be in economic matters.
d. integrates psychological insights to better understand individual choices.
c
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A monopolist will operate at the quantity where: a. MR = MC and charge a price equal to marginal revenue
b. MR = MC and charge a price equal to average variable cost. c. MR = MC and charge a price corresponding to demand at that level. d. MR = MC and charge a price corresponding to average total cost at that level.
Which of the following accurately describes a major difference between a monopolist and firms in perfectly competitive markets?
a. The monopolist maximizes profit; firms in perfectly competitive markets maximize sales b. The monopolist may earn long-run economic profit; firms in perfectly competitive markets cannot. c. The monopolist is a price taker; firms in other markets are price searchers. d. The monopolist may earn short-run profit; firms in perfectly competitive markets cannot.