The monopolist is a
A) price taker who tries to find the profit-maximizing rate of output.
B) price taker who tries to find the profit-maximizing price.
C) price searcher who tries to find the profit-maximizing price-output combination.
D) price searcher who tries to find the rate of output that maximizes price.
C
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An increase in taxes (when Ricardian equivalence doesn't hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
What was the original intent of the Federal Reserve Act of 1913?
What will be an ideal response?
The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because
A) people will buy fewer clothes that need dry cleaning than they otherwise would have. B) people will develop substitutes for dry cleaning that are wasteful. C) firms will be induced to leave the industry because of artificially high costs. D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning industry even though their average social cost exceeds price. E) firms whose average private cost exceeds the price will exit (or fail to enter) the dry cleaning industry even though their average social cost is less than price.
Which of the following is TRUE of the activities of ticket scalpers?
A) These activities cannot generate profits for the scalpers unless ticket prices are currently below market clearing levels. B) These activities help reduce the quantities of excess tickets supplied for events in which ticket surpluses currently exist. C) Engaging in these activities enable scalpers to push the price above the market clearing level. D) Engaging in these activities enable scalpers to push the price below the market clearing level.