Which of the following statements is true?
A) If a tax is imposed on a product sold by a monopolist, the monopolist will maximize its profits by producing where marginal revenue equals marginal cost.
B) A monopolist will always charge the highest possible price.
C) If a tax is imposed on a product sold by a monopolist, the monopolist can increase its price to pass along the entire tax to consumers.
D) Because a monopolist faces no competition, the demand for its product is perfectly inelastic.
Answer: A
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A graph with a positive slope indicates that the variables depicted on the axes move in the same directions.
Answer the following statement true (T) or false (F)
If the U.S. government were to run a substantial budget deficit, what would be the effects on the economy under the new classical view?
Which of the following statements is most accurate?
A. As the inflation rate increases, inflation becomes less stable. B. As the inflation rate decreases inflation becomes less stable. C. As the inflation rate increases, inflation becomes more stable. D. As the inflation rate decreases inflation becomes more volatile.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs are
A. $150. B. $300. C. $450. D. indeterminate from this information.