Refer to the above graph. The monopolist's profits:
A. will be equal to the area P1P3AC.
B. will be equal to the area P1P3AE.
C. will be equal to the area P2P3B.
D. cannot be determined from the information given.
Answer: D
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In the expansion phase of a business cycle
A. the inflation rate and productive capacity decrease. B. employment increases, but output decreases. C. the inflation rate decreases, but productive capacity increases. D. employment and output increase.
Which of the following appears in M2 and NOT M1?
A) checking account balances B) currency C) traveler's checks D) money market mutual funds
Market demand curves are found by
A. vertically summing individual demand curves. B. horizontally summing individual demand curves. C. summing individual demand curves in a parallel fashion. D. adding the slopes of individual demand curves.
Suppose a state discovered chemical compounds in their water. The source of these chemicals is the waste discharges of industrial plants in another state. This is an example of a(n):
a. market failure where the market price of the output of these industrial plants does not fully reflect the social cost of producing these goods. b. external cost imposed by the industrial plants of another state. c. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs. d. all of these.