Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?
A. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist.
B. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does.
C. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost.
D. A monopolist can earn economic profit in the short run; a competitive price taker cannot.
Answer: A
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Use the following table to answer the next question. ItemBillions of DollarsCheckable deposits$597Small time deposits818Currency639Money-market mutual funds held by businesses1,045Savings deposits, including money-market deposit accounts2,866Money-market mutual funds held by individuals979The value of the money included in M2 but not counted in M1 is
A. $4,663 billion. B. $4,442 billion. C. $1,457 billion. D. $2,886 billion.
A numerical target that companies must meet for the hiring of minorities is called a(n)
A) subsidy. B) quota. C) audit. D) allotment.
With unstable commodity demand and thus an unstable ________ curve, fluctuations in output are ________ by the fortuitous selection of ________ targeting
A) LM, minimized, money supply B) LM, eliminated, interest rate C) LM, minimized, interest rate D) IS, minimized, money supply E) IS, eliminated, interest rate
A regressive tax means that if someone earning $25,000 pays $5,000, someone earning $50,000 must pay:
A. Less than $5,000 B. Less than $10,000 C. More than $10,000 but less than $15,000 D. More than $15,000 but less than $20,000