A single-price monopolist has the demand and marginal cost schedules given in the above table. What is the profit-maximizing level of output and price?
What will be an ideal response?
The profit-maximizing output is 3 units, because that is the quantity for which the marginal revenue equals the marginal cost. The price is $18 a unit.
Economics
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Refer to the scenario above. Which of the following would have happened if the government had decided to provide an export subsidy on these cash crops?
A) The volume of exports would have decreased. B) The government's revenue would have increased. C) Domestic producers would have been better off. D) Domestic consumers would have been worse off.
Economics
Under the gold standard, if the dollar price of gold is pegged at $35 per ounce and the dollar/euro exchange rate is set at $2.40 per euro, what must the euro price of gold be pegged at?
What will be an ideal response?
Economics