A major difference between a monopolist and a perfectly competitive firm is that
A) the monopolist is certain to earn economic profits.
B) the monopolist's marginal revenue curve lies below its demand curve.
C) the monopolist engages in marginal cost pricing.
D) the monopolist charges the highest possible price that he can.
B
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An open economy is one that trades with other nations in goods and services, and perhaps also trades in financial assets.
Answer the following statement true (T) or false (F)
Fannie Mae and Freddie Mac:
a. Are government sponsored entities (GSE) b. Have a mandate to develop a secondary market in U.S. mortgages. c. Suffered severe economic losses and are now under conservatorship. d. All of the above.
Surpluses drive price up, while shortages drive price down
a. True b. False Indicate whether the statement is true or false
In situations where people make decisions with perfectly predictable consequences, traditional economic models cannot explain:
A. why people experience regret. B. what the rational choice should be. C. how people maximize their utility. D. how risk aversion influences decisions.