For a monopolist,
a. marginal revenue and price are constant as quantity increases
b. marginal revenue falls but price is constant as quantity increases
c. marginal revenue is constant but price falls as quantity increases
d. both marginal revenue and price fall as quantity increases, but price falls faster
e. both marginal revenue and price fall as quantity increases, but marginal revenue falls faster
E
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In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is
A) $1. B) $3. C) $5. D) some amount not given in the above three answers.
How does a firm in monopolistic competition determine its price and quantity? What type of profit can it make in the short run and the long run?
What will be an ideal response?
Under a gold standard, countries should
A) keep the supply of their domestic money constant. B) keep the supply of their domestic money fixed in proportion to their gold holdings. C) keep the supply of foreign exchange less than their domestic money supply. D) restrict the demand for foreign goods. E) outlaw speculation.
According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
A) increases in the price level result in lower real balances. B) higher current output results in higher desired investment. C) higher prices result in higher levels of spending as consumers attempt to stay ahead of inflation. D) businesses have difficulty in distinguishing relative price increases from general price increases.