The above figure shows the demand and cost curves facing a monopolist. The monopoly maximizes profit by setting price equal to
A) $100.
B) $200.
C) $300.
D) $400.
C
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The demand for money is a downward sloping line that depicts the relationship between the price level and the opportunity cost of holding money
a. True b. False Indicate whether the statement is true or false
Which of the following can lead to the existence of an oligopoly within a particular market?
a. A combination of economies of scale and market demand that creates a barrier to entry b. The government granting a patent for an invention to a single firm c. Lack of room in the market for a firm to raise prices by a single penny d. The market requiring more products than all firms in the market can produce together
If the demand for a product remains the same and the supply falls,
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.
The government of a small open economy announces a tax cut of $100 this year, combined with a tax increase of $110 next year, when the interest rate is 10%. What are the effects of this change on the world real interest rate, national saving, investment, and the current account balance in equilibrium when(a)Ricardian equivalence holds?(b)Ricardian equivalence does not hold?
What will be an ideal response?