Faced with a decrease in the demand for its product, a monopolist will lower prices and maintain output at its previous level if
A) the gain in profit is less than the increase in real wages paid.
B) the gain in profit is less than the decrease in real wages paid.
C) the gain in profit is less than the menu costs.
D) the gain in profit is greater than the increase in menu costs.
D
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Ceteris paribus is the same as rise / run
Indicate whether the statement is true or false
Define the efficient scale of production. For the situation of a firm in monopolistic competition, discuss its excess capacity
What will be an ideal response?
In a _____ the outsider buys the shares with debt collateralized by its other assets, and sometimes also by the target's assets
a. merger b. cash tender c. proxy fight d. leveraged buyout