The monopolist's profit-maximizing quantity of output is determined by the intersection of which of the following two curves?
a. marginal cost and demand
b. marginal cost and marginal revenue
c. average total cost and marginal revenue
d. average variable cost and average revenue
b
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Refer to the figure above. The relative price of T (in terms of S) is
A) 2. B) 1/2. C) 500. D) 1000.
Where is the interest rate determined in the classical model?
a. In the goods market b. In the loanable funds market c. By the federal government d. By the Fed e. Where aggregate expenditure equals GDP.
If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?
A) Demand decreases and becomes less elastic. B) Demand decreases and becomes more elastic. C) Demand increases and becomes less elastic. D) Demand increases and becomes more elastic.
Refer to the information provided in Figure 23.11 below to answer the question(s) that follow.
Figure 23.11Refer to Figure 23.11. The equation for the aggregate expenditure function AE0 is
A. AE0 = 50 + 0.6Y. B. AE0 = 50 + 0.4Y. C. AE0 = 80 + 0.6Y. D. AE0 = 50 + 0.75Y.