If a monopolist is operating at an output level where marginal revenue is positive, the firm:
A. could raise revenues by raising prices.
B. can always increase profits by lowering its price.
C. is operating on the elastic portion of its demand curve.
D. has maximized total revenues.
Answer: C
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________ is called an implicit cost, while ________ is called an explicit cost
A) A nonmonetary opportunity cost; a cost that involves spending money B) An accounting cost; an economic cost C) A production cost; a sales cost D) An actual cost; a hypothetical cost
Technically speaking, a monopolist's share of industry demand is _________ to make it qualify as a monopoly
a. 100 percent b. 50 percent or more c. 25 percent or more d. 0 percent e. there is no specific percentage
Exhibit 4-6 Demand and supply curves
If market supply decreases and, simultaneously, market demand increases, the new equilibrium will show:
A. market price will decrease, and market quantity exchanged will increase. B. market price will increase, and market quantity exchanged will decrease. C. market price will increase, and the quantity exchanged could increase, decrease, or remain the same. D. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
Currency held by the public$450 billionDemand deposits220 billionOther checkable deposits170 billionTraveler's checks2 billionSavings deposits800 billionSmall time deposits50 billionMoney market mutual funds170 billion
According to the information in Table 16.1, M2 is equal to:
A. $840 billion. B. $1,062 billion. C. $1,692 billion. D. $1,862 billion.