A nondiscriminating pure monopoly must decrease the price on all units of a product to sell more units. This explains why ________.
A. total revenues are greater than total costs at the profit maximizing level of output
B. a pure monopoly's marginal revenue curve is below its demand curve
C. there are barriers to entry in pure monopoly
D. a pure monopoly has a perfectly elastic demand curve
Answer: B
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Refer to the scenario above. If the players have to pay a fairness penalty of $6, ________
A) the game will not have a Nash equilibrium B) the game will have multiple Nash equilibria C) the game will have multiple dominant strategy equilibria D) the game will have a unique Nash equilibrium
The aggregate demand curve shows the alternative combinations of the price level and real income that result in simultaneous equilibrium in both the goods and money markets
Indicate whether the statement is true or false
In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax
a. slightly less equal than b. about as equal as c. slightly more equal than d. a great deal more equal than
Which of the following measures gives the earliest warning of increasing inflation?
A. the Producer Price Index B. the Personal Consumption Expenditure Index C. the Consumer Price Index D. All of these should signal the same short-run inflation.