In contrast to competitive firms, single-price monopolies
A) do not have to worry about market demand.
B) sell only if demand is inelastic.
C) can never incur a loss.
D) can make an economic profit indefinitely.
E) must take the price that is determined by the market demand and market supply.
D
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Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor, to help him
Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?
A producer's minimum acceptable price for a particular unit of a good:
A. is the same for all units of the good. B. will, for most units produced, equal the maximum that consumers are willing to pay for the good. C. equals the marginal cost of producing that particular unit. D. must cover the wages, rent, and interest payments necessary to produce the good but need not include profit.