A monopoly:
A. can increase price and increase output at the same time.
B. can charge any price it wants and still sell all of its output.
C. can sell any output it produces provided it accepts the market price.
D. must lower price in order to increase output.
Answer: D
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A. Detrimental externalities B. Beneficial externalities C. Poorly defined property rights D. The cost disease
Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain
If a product's price falls and the consumer buys 4 units, as they did before the price change, then the:
A. budget line will be unaffected. B. consumer will no longer be in equilibrium. C. budget line may shift either outward from or inward to the origin. D. budget line must shift inward to the origin.
Answer the following statement true (T) or false (F)
1) Nonrenewable natural resources are fixed in supply (actually or virtually). 2) Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years is less than an $80 barrel today. 3) Present value allows us to weigh the benefits and costs of using resources today or in the future. 4) The user cost of a resource is the market price paid by the buyer of the resource.