Refer to the diagram. If this industry is purely monopolistic, the profit-maximizing price and quantity will be:
A. P 3 and Q 3 .
B. P 1 and Q 1 .
C. P 2 and Q 2 .
D. indeterminate on the basis of the information given.
A. P 3 and Q 3 .
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Which of these is NOT a generally accepted means of reducing risk?
A) Diversification B) Insurance C) Obtaining more information D) none of the above
As a result of a tariff, domestic consumers buy
a. fewer units at a higher price. b. fewer units at a lower price. c. more units at a lower price. d. more units at a higher price.
An advantage emission taxes and permits have over direct controls is that the former
a. work well even if pollution output cannot be accurately measured. b. can respond quickly to new information about the dangers of particular pollutants. c. make it in firms' interests to reduce pollution in the most efficient manner possible. d. reduce pollution to zero.
The Fed's actions influence real GDP by changing expenditure plans. Other things remaining the same the lower the real interest rate, the ________ is the amount of consumption expenditure and the _______ is the amount of saving.
Fill in the blank(s) with the appropriate word(s).