In the above figure, what would be the profit-maximizing output and price for this natural monopolist?
A. 1,200; $3
B. 700; $7
C. 900; $7
D. 700; $10
Answer: D
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The quantity equation states that the
A) money supply times the velocity of money equals the price level times real output. B) money supply times the price level equals real output divided by the velocity of money. C) money supply divided by the velocity of money equals the price level divided by real output. D) money supply times the price level equals real output times the velocity of money.
Total revenue is a term economists use to describe the
a. price the firm charges for its goods b. money remaining after costs are paid c. average profit earned per good sold d. total profit earned by the firm e. money the firm receives selling its goods
The model of aggregate demand and aggregate supply is nothing more than a large version of the model of market demand and market supply
a. True b. False Indicate whether the statement is true or false
What is the inflation tax, and how might it explain the creation of inflation by a central bank?