If Ms. Anniston transfers $1,000 from her checking account to her money market account, then
A. M1 falls and M2 remains the same.
B. M1 falls and M2 rises.
C. both M1 and M2 rise.
D. M1 remains the same and M2 rises.
Answer: A
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The table above shows the demand and total cost schedule for a monopolist hotel. What price should the monopolist charge if it is a single-price monopoly that maximizes its profit?
A) $171 B) $161 C) $151 D) $141
A monopolistically competitive firm is like a perfectly competitive firm insofar as both
A) have negatively sloping demand curves. B) can make zero economic profit in the long run. C) have horizontal MR curves. D) are protected by high barriers to entry.
An example of a supplier that used its bargaining power to charge high prices to its customers is
A) the firms that supply paper napkins to McDonald's restaurants. B) the publishers of the Encyclopedia Britannica. C) Wal-Mart, which required many of its suppliers to alter their distribution systems to accommodate Wal-Mart's need to control the flow of goods to its stores. D) the Technicolor Company, the sole producer of cameras and film that movie studios needed to produce color movies in the 1930s and 1940s.
A decrease in supply, holding demand constant, will cause:
A. Higher prices and a larger quantity sold B. Higher prices and a smaller quantity sold C. Lower prices and a smaller quantity sold D. Lower prices and a larger quantity sold