Inflation occurs when:
a. The prices of all goods and services rise by the same percent during a given period of time.
b. There is a sustained increase in the average price level.
c. There is an increase in the price level of raw materials.
d. The contraction of the monetary base leads to a decrease in the average price level.
.B
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Total revenue is equal to quantity multiplied by average revenue.
Answer the following statement true (T) or false (F)
Monopolies are inefficient because
A) they price discriminate. B) they want to maximize profits. C) they always make above-normal profits. D) price exceeds marginal cost.
Fixed costs are
a. costs that vary with output b. equal marginal costs c. costs that do not vary with output d. equal to total costs
A market that mainly stresses product differentiation is called
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.