How does a per-unit subsidy affect the simple monopoly equilibrium?
a. The subsidy does not affect marginal cost and thus does not affect the monopoly equilibrium.
b. The subsidy lowers the price charged by the monopoly, but it also lowers social gain.
c. The subsidy increases the monopoly's profit but does not improve social gain.
d. The subsidy causes both monopoly output and social gain to increase.
d. The subsidy causes both monopoly output and social gain to increase.
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Economists generally assume
A) individuals act strictly in the public interest. B) individuals are never concerned with the interests of other people. C) individuals rarely promote the projects in which they are interested. D) none of the above.
Salt, for example, as it is used in part of Ethiopia, is an example of
A) commodity money. B) commodity-backed paper currency. C) barter currency. D) fiat money.