In the short run, even if a monopoly's total revenue does not cover its variable costs, it should continue to produce because ultimately in the long run, the monopoly will start earning profits
Indicate whether the statement is true or false
FALSE
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The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10
If he receives $12 for each MP3 player he sells from the store owner and the store owner controls the quantity of MP3's available for sale, then A) 40 MP3 players will be sold. B) joint profit is $798. C) joint profit will be maximized. D) Nick will sell as many as he can.
The derived demand curve for loans slopes downward because as interest rates
A. fall, future income becomes less valuable. B. fall, investors develop pessimistic expectations. C. fall, future income becomes more valuable. D. rise, investors become pessimistic.
Since NAFTA was signed, Mexico saw the productivity of its firms:
a. decrease in the nonmaquiladora plants. b. decrease in the maquiladora plants. c. increase in the maquiladora plants at a faster pace than in the nonmaquiladora plants. d. increase in the maquiladora plants at a slower pace than in the nonmaquiladora plants.
Excise tax is often considered unfair because of its high level of ______.
a. elasticity b. regressiveness c. progressiveness d. complexity