If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L-0.5, then the labor demand for the monopoly is
A) 0.8PL-0.5.
B) 0.4PL-0.5.
C) 0.8PL-2.
D) 0.4PL-2.
A
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When the absolute price elasticity of demand is less than 1, demand is
A) elastic. B) unit-elastic. C) inelastic. D) undetermined without more information.
Which of the following is not a cost per unit produced?
a) Total cost; b) Marginal cost; c) Average variable cost; d) Both (a) and (b) are not unit costs.
If the reserve ratio is 8 percent, then an additional $800 of reserves can increase the money supply by as much as
a. $6,400. b. $8,000. c. $12,500. d. $10,000.
According to Keynesian theory
A. changes in the equilibrium interest rate will not always equate saving and investment. B. prices and wages are flexible downward. C. say's law is valid. D. savers and investors have identical motives.