Which of the following is true about a Sweezy oligopoly?
A. The marginal revenue function has an upward "jump" or "discontinuity."
B. The marginal cost function has an upward "jump" or "discontinuity."
C. The marginal revenue function has a downward "jump" or "discontinuity."
D. The marginal cost function has a downward "jump" or "discontinuity."
Answer: C
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The total cost of producing one unit is $50. The total cost of producing two units is $75. At a production level of two units, the cost function exhibits
A) economies of scale. B) rising average costs. C) increasing marginal costs. D) constant returns to scale.
An extremely high rate of inflation is called ________.
A. disinflation B. super inflation C. hyperinflation D. deflation
How much is saving when disposable income is $1600 billion?
Economist Jones favors a constant-money-growth-rate rule. She says that if the annual money supply growth rate each year is equal to the average annual growth rate in Real GDP, price stability will exist over time. What would economist Smith, who favors activist monetary policy, say to economist Jones?
A) Your analysis assumes that Real GDP is constant over time, and it is not. B) Your analysis assumes that velocity is constant, and it is not. C) Your analysis assumes that you can correctly define the money supply. D) b and c E) a, b and c