When a second firm enters a monopolist's market, the initial demand curve facing the monopolist will:
A. shift to the left.
B. shift to the right.
C. remain the same.
D. None of these
Answer: A
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Suppose the value of the CPI is 1.100 in year one, 1.210 in year two, and 1.331 in year three. Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three. The price level is increasing, the inflation rate is ________, and the relative price of computers is ________.
A. increasing; increasing B. constant; decreasing C. increasing; decreasing D. constant; increasing
Changes in which of the following shifts the aggregate supply curve? i. the price level ii. the money wage rate iii. potential GDP
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
The law of diminishing returns explains why
a. monopolies have a guaranteed profit margin b. short-run MC and AVC curves are U-shaped c. the production possibilities curve is bowed out d. long run supply curves are downward sloping e. total product is a straight line
If in a closed economy Y = $11 trillion, which of the following combinations would be consistent with national saving of $3 trillion?
a. C = $8 trillion, G = $3 trillion b. C = $13 trillion, G = -$1 trillion c. C = $9 trillion, G = $5 trillion d. C = $7 trillion, G = $1 trillion