Appendix: Common value auctions with open bidding necessarily entail

Which of the following purchases is included in the calculation of gross domestic product?

a) a used economics textbook from the bookstore b) new harvesting equipment for the farm c) 1,000 shares of stock in a computer firm d) a car produced in a foreign country e) government bonds issued by a foreign firm

Which of the following statements is correct?

a. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. b. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit. c. When a monopolist produces where price equals the minimum of average total cost, it earns a positive economic profit. d. If the monopolist is earning a positive economic profit, it must be producing where MR = MC.