Why does a monopolist's total revenue eventually fall as it produces and sells more output?
There will be a fall in revenue because the monopolist must lower its price to sell more output, and
eventually the loss of revenue from the lowering of price outweighs the additional revenue from selling
more units.
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If the interest rate is 4 percent, how much interest would the retiree earn the first year if she opted for the lump sum payment, and chose to invest the entire payment at this interest rate?
A) $1,400 B) $20,000 C) $55,000 D) $235,000
In a market for homogenous goods:
A. firms sell identical products. B. firms sell different products. C. firms sell identical products for identical prices. D. firms sell different goods for identical prices.
Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will happen next?
What will be an ideal response?
Most transactions in the foreign exchange market are for ______________.
a. portfolio investments b. tourists c. businesses d. foreign direct investments