When a monopolist is maximizing profit, which of the following conditions will always be satisfied?
a. P = MC
b. MR = AVC
c. P = ATC
d. MR = MC
D
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Which of the goals pursued by policymakers in an open economy is desirable because can help reduce the volatility of economic activity?
A) exchange-rate stability B) monetary policy independence C) free capital flows D) appreciation of the domestic currency
The Value of Call Monitoring Comcast's call center had a problem with unresolved incidents. Customers who called in for technical help often had to make follow-up calls because the first recommended solution did not work. Since the call center staff
were expected to handle an average of 10 calls per hour, Comcast suspected that calls were being terminated before the complaint had been resolved. As a possible solution, they hired supervisors to randomly listen into calls so as to better monitor inappropriate call terminations at a cost of $8,000 per month. This cut down the need for follow-up calls and, more importantly, increased customer retention. The number of customers who called in a complaint and would terminate services within three months was cut from 150 to 130 . How large must the present value of a retained customer's contribution margin be for additional monitoring to be profitable?
Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.
The inside lags for monetary policy are relatively long compared to those for fiscal policy.
Answer the following statement true (T) or false (F)