A monopoly will never operate on the ____ portion of its demand curve because an increase in price _____ total revenue and _____ total cost, thereby increasing the firm's total profit
a. inelastic; decreases; decreases
b. elastic; decreases; increases
c. inelastic; increases; decreases
d. unit elastic; does not change; increases
e. inelastic; increases; increases
Answer: c. inelastic; increases; decreases
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A technique that can be employed to make a portfolio less risky than any of its individual securities is
a. plowback. b. diversification. c. programmed trading. d. speculation.
What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?
a. The change in the monetary base is ambiguous. b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued. c. The monetary base will rise. d. The monetary base is never affected by interventions of the central bank. e. The monetary base will fall.
Nations get significant advantages if they have a single, valuable, natural resource, with little downside risk
Indicate whether the statement is true or false
If production technological interdependency exists, the ________ integration of the successive production stages ________ production costs.
A) vertical; increases B) vertical; can reduce C) horizontal; can reduce D) horizontal; doubles