When a monopolist increases the amount of output that it produces and sells, average revenue
a. increases, and marginal revenue increases.
b. increases, and marginal revenue decreases.
c. decreases, and marginal revenue increases.
d. decreases, and marginal revenue decreases.
d
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In the long run, the representative firm in monopolistic competition tends to have
A. economic profits B. no product differentiation. C. a perfectly elastic demand curve. D. excess capacity.
If the Real GDP increases from one year to the next, we could conclude the country experienced:
A. inflation and no change in output. B. an increase in output and no change in prices. C. a definite increase in output and may have experienced an increase in prices. D. definite inflation and may have experienced an increase in output.
Countries with high labor costs tend to:
a. rely on only one method for the production of goods b. use more labor rather than capital in the production process. c. use more capital rather than labor in the production process. d. be relatively poor countries.
With the value of money on the vertical axis, the money supply curve is
a. upward sloping because people supply a larger quantity of money when the value of money increases. b. downward sloping because people supply a larger quantity of money when the value of money decreases. c. horizontal because we assume the central bank controls the money supply d. vertical because we assume the central bank controls the money supply.