If Real GDP is $8,000, the money supply is $4,000, and the price level is 3, then velocity is
A) 2.00.
B) 3.33.
C) 6.00.
D) 7.50.
E) none of the above
C
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If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
A. decreasing cost industry. B. increasing cost industry. C. constant cost industry. D. industry characterized by economies of scale.
In the long run, a representative firm in a monopolistic ally competitive industry will end up:
A. Having an elasticity of demand that will be less than it was in the short run B. Having a larger number of competitors than it will in the short run C. Producing a level of output at which marginal cost and price are equal D. Earning a normal profit, but not an economic profit
Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output?
A) Price = average revenue. B) Marginal revenue = marginal cost. C) Price > marginal cost. D) Profit = (AR-ATC) x Q.
The marginal revenue for a single-price monopoly with a downward-sloping demand curve
A) is less than the price.
B) is greater than the price.
C) is equal to the price.
D) might be more than, less than, or equal to the price, depending on whether the slope of the demand curve exceeds 1.0 in magnitude.
E) might be more than, less than, or equal to the price, depending on whether the price elasticity of demand exceeds 1.0 in magnitude.