A monopoly produces widgets at a marginal cost of $20 per unit and zero fixed costs. It faces an inverse demand function given by P = 100 ? 4Q. What are the profits of the monopoly in equilibrium?
A. $800
B. $600
C. $200
D. $400
Answer: D
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If an individual borrows $100, and pays back $100 after a year to settle his loan, it implies that the rate of interest is:
A) 0 %. B) 100%. C) 1%. D) 10%.
In the monopoly, the firm's marginal revenue curve is ________, while in a perfectly competitive market, each firm's marginal revenue curve is ________
A) downward sloping; horizontal B) horizontal; downward sloping C) upward sloping; horizontal D) downward sloping; upward sloping
What are the two big approaches to thinking about fairness?
What will be an ideal response?
When banks hold excess reserves the:
A. money multiplier overestimates how much money will be created in the economy. B. money multiplier underestimates how much money will be created in the economy. C. reserve ratio is not fully functioning, and should be raised. D. reserve ratio is not fully functioning, and should be lowered.