The monopoly maximizes profit by setting
A) price equal to marginal cost.
B) price equal to marginal revenue.
C) marginal revenue equal to marginal cost.
D) marginal revenue equal to zero.
C
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A supply curve slopes upward because quantity supplied is higher when price is higher.
Answer the following statement true (T) or false (F)
When net capital flows are negative
A) net foreign investment is negative. B) capital inflows are less than capital outflows. C) capital outflows are less than capital inflows. D) A and B are both correct.
Supply curves slope upward because:
a. the quality is assumed to vary with price. b. technology improves over time, increasing the ability of firms to produce more at each possible price. c. increases in the price of a good lead to rightward shifts of the supply curve. d. rising prides provide producers with the incentives needed to increase the quantity supplied.
Samuelson and Solow argued that
a. high unemployment puts upward pressures on wages and prices. b. given the historical evidence, a combination of low inflation and low unemployment was not possible. c. Both A and B are correct. d. None of the above are correct.