When considering marginal revenue for the monopolist, which of the following is FALSE?
A. An essential point for the monopolist, marginal revenue is always less than price.
B. The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits.
C. Marginal revenue is always less than price because price must be reduced on all units to sell more.
D. To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price.
Answer: B
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When the quantity demanded of a good exceeds the quantity supplied of the good at the prevailing market price, _____.
A) the market will be in equilibrium. B) the price of the good will decrease. C) the price of the good will tend to increase. D) the demand curve will shift rightward until the surplus is eliminated. E) the supply curve will shift leftward until the surplus is eliminated.
Refer to Figure 3-5. At a price of $15
A) there would be a surplus of 4 units. B) there would be a shortage of 4 units. C) there would be a shortage of 2 units. D) there would be a surplus of 6 units.
The full-employment rate of unemployment is also called the:
a. Natural rate of unemployment b. Cyclical rate of unemployment c. Frictional rate of unemployment d. Potential rate of unemployment a. Natural rate of unemployment
According to the Classical growth model, the most important source of economic growth is:
A. increasing returns to scale. B. population growth. C. capital accumulation. D. technological development.