"Being the only seller in the market, the monopolist can choose any price and quantity it desires." Evaluate this statement: Is it true or false? Explain your answer
What will be an ideal response?
The statement is false. The monopolist cannot choose both the price and quantity. The monopolist has some market power and therefore has some ability to affect market price but it does not control the demand curve. If the monopolist sets a price, the quantity sold will be indicated by the demand curve.
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Goods and services that the United States sells to other nations are called
A) exchanges. B) world goods. C) imports. D) exports. E) bartered goods.
According to the graph shown, if the economy is in autarky and decides to open trade with a tariff, the impact on domestic supply is they will:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. increase output from 250 to 500.
B. decrease output from 815 to 500.
C. increase output from 500 to 815.
D. decrease output from 1500 to 1150.
The difference between microeconomics and macroeconomics is that
a. microeconomics involves mathematical relationships, and macroeconomics is predominantly a verbal analysis. b. microeconomics deals with the principle of scarcity, and macroeconomics deals with the problem of poverty. c. microeconomics deals with narrowly defined units, and macroeconomics focuses on highly aggregated markets. d. microeconomics is normative, and macroeconomics is positive.
A variable factor of production:
A. plays no role in the law of diminishing marginal returns. B. is variable only in the short run. C. is fixed in the long run but variable in the short run. D. is variable in both the short run and the long run.