Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will:
a. make an economic profit.
b. stay in operation in the short run, but shut down in the long run.
c. shut down in the short run.
d. lower the price.
a
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If the real exchange rate between the United States and Japan is ________, then it is cheaper to buy goods in Japan than in the United States
A) greater than 1.0 B) greater than 0.5 C) less than 0.5 D) less than 1.0
Suppose an individual has $100 to invest. Two assets are available. One asset will yield a return of 10%, while the other risky asset will yield 0% with probability .5 and 21% with probability .5
Suppose the investor's utility function is given by U(x) = ln(x) where x is the wealth after investing (assume she is investing for just one period). How much will she invest in the risky asset?
?Marginal propensity to consume is equal to the change in ____ divided by the change in ____
a. consumption spending; total income b. saving; total income c. saving; disposable income d. consumption spending; disposable income
The discount rate is
A. set in the money market. B. set by each member bank. C. set by the Federal Reserve District Banks. D. the same as the federal funds rate.