A monopolist will not change its current behavior
A. unless demand is greater than marginal revenue.
B. unless it earns positive economic profits in the long run.
C. even if total revenue does not cover variable costs.
D. if it earns positive economic profits in the long run.
Answer: D
You might also like to view...
"The value of the next best alternative" defines
A. the Law of Increasing Costs. B. the economic problem. C. allocative efficiency. D. opportunity cost.
In the context of the neoclassical growth model, which of the following does NOT explain the growth rates of countries which are initially poor?
A) nations which are below their steady-state growth paths will grow more slowly until they reach the steady state B) the rate of return is higher in poor countries C) capital flows from rich countries to poor countries D) the passage of time allows poor countries to adopt the productive techniques of rich countries.
In 2009, the United States largest balance of trade deficit was with
a. the European Union b. Canada c. China d. Mexico e. Brazil
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.