In order to maximize its profit, a single-price monopoly produces the amount of output so that
A) P = MC.
B) MR = MC.
C) P = MC - MR.
D) P = MR.
E) P = ATC.
B
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Unlike the Classical economists, Keynes believed that money could affect real economic activity through its effects on
A) the price level. B) the interest rate. C) savings. D) velocity.
When there is a positive externality associated with the watering of one's lawn, the free market results in:
a. not enough lawn watering. b. too much lawn watering. c. the socially optimal level of lawn watering. d. people watering each other's lawns. e. government subsidies for lawn watering.
A monopolistic industry will have a Herfindahl index value of:
a. 1. b. 100. c. 500. d. 1000. e. 10.
Exhibit 17-1: Global Comparison of Government Surpluses and Deficits as a Percentage of GDP, 2016 ? Country Surplus (+) or Deficit (-) as a percent of GDP Canada -1.10 Iceland 12.57 Latvia 0.06 Norway 3.99 Spain -4.51 United States -4.94? Given the information in Exhibit 17-1, which of the following statements is correct?
A. Canada was the closest of the countries shown to balancing its budget. B. Norway likely had to sell government securities to finance its overspending. C. Iceland experienced the largest deficit of the countries shown. D. The national debts of Canada, Spain and United States increased in 2016.