A profit-maximizing monopolist produces an output level that is allocatively inefficient because
a. price is greater than marginal cost
b. price is less than marginal cost
c. marginal revenue is greater than marginal cost
d. marginal revenue is less than marginal cost
e. consumers wish to purchase all that is produced
A
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Ed Van Zaig is considering opening a sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building he owns and currently rents for $6,000 a year. His costs at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What is the minimum revenue he must earn per year in order for it to be worth his while to open his sushi
bar? a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
Most Americans
a. have accurate perceptions of the level of corporate profits. b. underestimate corporate profits. c. overestimate corporate profits. d. believe that corporations earn zero profit.