Suppose a profit-maximizing monopolist faces a constant marginal cost of $10, produces an output level of 100 units, and charges a price of $50 . The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $2,000
a. True
b. False
Indicate whether the statement is true or false
True
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Assume the market was in equilibrium in the graph shown. If the market price gets set to $7, which of the following is true?
A. Some producers gain surplus, but total surplus falls.
B. Some producers lose surplus, but total surplus rises.
C. Some consumers gain surplus, but total surplus falls.
D. Some consumers lose surplus, but total surplus rises.
Due to the distortionary effects of inflation, capital investment may be reduced due to higher price levels.
Answer the following statement true (T) or false (F)
According to Say's law, there cannot be overproduction of goods and services because:
A. planned aggregate expenditures sometimes fall short of total output. B. prices and wages are "sticky" or inflexible in the downward direction. C. demand creates its own supply. D. supply creates its own demand.
When the relationship between two variables changes,
A. The curve becomes linear. B. The entire curve shifts. C. There is movement from one point on the curve to another point on the curve. D. All of the choices are correct.