Assume that a monopolist faces a linear demand curve. If the firm is operating at an output level where marginal revenue is positive, the firm:
A. Has maximized total revenues
B. Could raise revenues by raising prices
C. Can always increase profits by lowering its price
D. Is operating on the elastic portion of its demand curve
D. Is operating on the elastic portion of its demand curve
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The real wage equals the nominal wage ________ the CPI, all times 100
A) plus B) divided by C) minus D) times
Assume the capital-labor ratio remains constant. If investment increases at a constant rate, real GDP per worker will increase ________, and if total factor productivity increases at a constant rate, real GDP per worker will increase ________
A) at an increasing rate; at an increasing rate B) at a constant rate; at an increasing rate C) at a constant rate; at a decreasing rate D) at a decreasing rate; at a constant rate
The term "capital formation" actually implies adding new equipment to a nation's factories
a. True b. False Indicate whether the statement is true or false
Which of the following is responsible for invoking the Fed's emergency powers?
A. FOMC B. a majority of the Federal Reserve Bank presidents C. Board of Governors D. Fed Chairman