The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can
A) only choose the desired output, while a competitive firm can control only price.
B) only choose the desired price, while a competitive firm can control only output.
C) control the position of its demand schedule, but a competitive firm cannot.
D) control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.
D
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Refer to the figure above. What is the equilibrium wage rate if the labor demand curve is LD1 and the labor supply curve is LS1?
A) $25 B) $30 C) $20 D) $15
Nominal GDP measures the value of all final goods and services at base-year prices
Indicate whether the statement is true or false
Which of the following is a true statement about equilibrium in the foreign exchange market?
A) Net exports are zero. B) The expected return on domestic assets is equal to the expected return on foreign assets. C) Foreigners wish to purchase the entire supply of domestic assets. D) The relevant central banks meet regularly to choose the equilibrium exchange rate.
Why would the government create monopoly power by granting a firm a patent that prevents other firms from competing with the patent holder?