Although a monopoly can charge any price it wishes, it chooses:
a. the highest price.
b. price equal to marginal cost.
c. the price that maximizes profit.
d. competitive prices.
e. a fair price.
c
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Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a
A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
All of the following are characteristics of a proprietorship EXCEPT
A) the business is owned by one individual. B) one person is responsible for all the debts of the firm. C) one person gets all of the profits. D) the firm can form a corporation to protect itself against the debts.
The wood in a forest would be considered a
A. sequestered natural resource. B. sustainable natural resource. C. renewable natural resource. D. limited natural resource.