How are the fundamental economic decisions determined in North Korea?
A) Individuals, firms, and the government interact in a market to make these economic decisions.
B) These decisions are made by the country's elders who have had much experience in answering these questions.
C) The government decides because North Korea is a centrally planned economy.
D) The United Nations decides because North Korea is a developing economy.
Answer: C
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The main purpose of the antitrust laws is:
A. to encourage firms to produce where P > MC. B. the elimination of both negative and positive externalities. C. to prevent the monopolization of industries. D. to regulate natural monopolies.
If a monopolist has an output price of $10, marginal revenue equal to $4, and faces a fixed wage rate of $8, then the monopolist should hire labor until the marginal revenue product is equal to
A. $10. B. $14. C. $8. D. $4.