A monopoly firm operates with declining average cost. If regulators impose marginal cost pricing, the market will
A. remain a monopoly but behave like a perfectly competitive industry.
B. become perfectly competitive.
C. be entered by additional firms but will not necessarily become perfectly competitive.
D. maximize consumer surplus.
Answer: D
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Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago,
A) workers in the United States are worse off than they were over 100 years ago. B) GDP is lower than it would be if U.S. workers worked the same workweek they had 100 years ago. C) GDP is higher than it would be if U.S. workers worked the same workweek they had 100 years ago. D) workers in the United States earn less income than they did over 100 years ago.
The possibility of multiple-peaked preferences cannot be ruled out.
A. True B. False C. Uncertain