An increase in household debt will lead to an increase in consumption expenditures
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following statements regarding a monopolist is false?
A) The marginal revenue curve lies below the demand curve for the monopolist's output. B) Unlike a perfectly competitive firm, a monopolist faces little or no competition. C) The monopolist sets price equal to marginal cost to maximize profits. D) The monopolist may or may not earn positive economic profits.
Products can be differentiated
A) if the buyers are homogeneous and their number increases. B) by location and by brand name. C) only by brand name. D) none of the above.
A firm is a price taker in the labor market if
A) the skills of available workers do not match the requirements for the job. B) there is a scarcity of labor in the market. C) the hiring of more workers will drive the existing wage rate up. D) the hiring of more workers will leave the existing wage rate unchanged.
A monopoly faces an inverse demand curve of P = 100 - 2Q. The marginal cost curve is MC = .5Q. What government price ceiling would represent optimal price regulation?
What will be an ideal response?