Title: eco 365 mart Focus Dreams/eco365martdotcom - PowerPoint PPT Presentation

Description: 1). The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will: • Exceed the marginal cost of diamonds but eual to the average total cost of diamonds. • Exceed both the marginal cost and the average total cost of diamonds. • Be eual to the marginal cost of diamonds. • Be eual to the average total cost of diamonds. 2). Using 100 workers and 10 machines, a firm can produce 10,000 units of output; using 250 workers and 25 machines, the firm produces 21,000 units of output. These facts are best explained by: • Economies of scope • Diseconomies of scale • Diminishing marginal productivity • – PowerPoint PPT presentation