Suppose a monopolist faces the demand curve shown.
If the monopolist's marginal cost is constant and equal to $30, its profit-maximizing level of output is:
A. 20 units.
B. 30 units.
C. 40 units.
D. 50 units.
Answer: A
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An important condition required for economic growth is
A) economic freedom. B) a libertarian government. C) a totalitarian government. D) a democratic government. E) the incentive to limit international trade so that all economic growth remains within the country.
A rise in the real interest rate r
a. creates income and substitution effects that reduce C0. b. creates income effects that reduce C0, substitution effects that increase C0. c. creates income effects that increase C0, substitution effects that reduce C0. d. creates income and substitution effects that increase C0.
People basically borrow in order to
A) go into debt. B) have more funds. C) have interest payments. D) have current consumption rather than waiting to consume in the future.
Price elasticity of demand is calculated as the ratio of the change in quantity demanded to the change in price.
Answer the following statement true (T) or false (F)