The more time a firm gets to adjust to a given price change, the more elastic its supply is
Indicate whether the statement is true or false
true
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Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by ________
A) shutting down B) lowering its price and increasing its output C) raising its price and decreasing its output D) lowering its price and decreasing its output
The marginal social cost of burning garbage in Houston is the sum of the marginal private cost and the marginal external cost." Is this assertion correct or incorrect?
What will be an ideal response?
When the Fed purchases government securities, it:
a. increases banks' reserves and makes possible an increase in the money supply. b. decreases banks' reserves and makes possible a decrease in the money supply. c. automatically raises the discount rate. d. uses discounting operations to influence margin requirements. e. has no effect on either the money supply or the discount rate.
Which of the following factors will decrease the current demand for a product?
A. An expected increase in the future price of the product B. A decrease in the current price of a substitute product C. A decrease in the current price of a complementary product D. An increase in the current price of a substitute product