In order to sell more units, a monopolist must lower its prices. As shown in the table below, total revenue will initially ____________ and then ______________.
a. increase, continue to increase
b. decrease, continue to decrease
c. increase, decrease
d. decrease, increase
Ans: c. increase, decrease
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Use the following graph to answer the next question.
If the industry were served by a pure monopoly, the deadweight loss would be the area ________.
A. ACE B. AEF C. ACB D. This can't be determined with the information provided in the graph.
The German bond market
A) is very large by international standards. B) is very small by international standards. C) is about the same size as the U.S. bond market. D) shrunk considerably in the 1990s.
A syndicate is
A) a group of brokers illegally making use of insider information. B) a group of commercial banks that agrees to accept the checks of each other's depositors. C) a group of investment banks underwriting a large security issue. D) a group of dealers that markets a government bond issue.
The period over which a call or put option exists is
A) determined by its delivery date. B) determined by its expiration date. C) determined by whether the contract is written for a commodity or for a financial instrument. D) indeterminate; options contracts continue in existence until either the buyer or the seller desires to discontinue it.