Since a monopoly can set any price it wants, it always makes a profit
Indicate whether the statement is true or false
False. The profit-maximizing price can result in a loss.
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Suppose a country's net exports equal 0. If the volume of exports increases without any change in the volume of imports, the country will experience a ________
A) budget surplus B) budget deficit C) trade deficit D) trade surplus
Why might an automobile labor union lobby Congress to place tariffs on labor-saving devices like automated welding and riveting machines? Why might this be a mistake?
What will be an ideal response?
Critics of supply-side economics argue that tax cuts favored by supply-siders will have the greatest effect on
a. aggregate supply. b. tax receipts. c. aggregate demand. d. the money supply.
Protectionism may reduce imports, and it will also
a. appreciate the dollar, reducing exports. b. appreciate the dollar, increasing exports. c. depreciate the dollar, increasing exports. d. depreciate the dollar, reducing exports.