A monopolist is able to choose whatever price that it wishes and is only constrained by its greed
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following four firms would most likely NOT be part of a perfectly competitive market?
A) Mark sells his tomatoes at the local farmers market. B) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. C) Village Pizza sells pizza in a college town. D) Space Age Fuel is a gas station in Bend, Oregon.
Jewelers are willing to hold large inventories of diamonds
a. because the demand for diamonds is large and growing b. because that minimizes the fixed cost of producing diamond jewelry c. because, given monopoly control of the market for diamonds, they are confident that the price of diamonds will not plummet rapidly d. because, given monopoly control of the market for diamonds, they are confident that the price of diamonds will rise rapidly e. because that is what their customers expect them to do
The quantity theory of money assumes that
a. the national economy tends to operate at less than full. b. the velocity of money is unstable. c. the national economy tends to operate at full employment. d. the velocity of money varies with changes in interest rates.
If MB grows smaller and MC grows larger as the activity level grows, then:
A. an interior action for which MB = MC is the best choice. B. net benefit can be increased by increasing the action. C. net benefit can be increased by decreasing the action. D. there is no best choice.