A monopolist will not produce
A. in the perfectly competitive level of output when it engages in perfect price discrimination.
B. a positive level of output when its marginal revenue is declining.
C. a positive level of output when its price is less than average total cost but greater than average variable cost.
D. in the inelastic portion of its demand curve, where marginal revenue is negative.
Answer: D
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Which of the following exemplifies the tragedy of the commons?
A) Residents of the southern coast of Alaska receive only one public broadcasting signal which may be eliminated altogether if government funding is cut. B) The Lakeview Estates community is growing so fast that the city's only fire station is not able to keep pace with the population growth in the community. C) British citizens receive free universal health care administered by the government. D) The Tibetan Antelope, distinguished for its fur which is commonly used as a light wool, is a target for poachers.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.