Under a policy of average-cost pricing, a monopolist must charge the price at which its ________ cost curve intersects its ________ curve.
A. marginal; demand
B. average variable; demand
C. marginal; marginal revenue
D. average; demand
Answer: D
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Antitrust laws are laws that ________.
A) support monopolies B) promote competition C) assist firms in earning greater profit D) create barriers to entry
Which of the following is a normative economic statement?
a. The U.S. rate of unemployment was lower in 2004 than it was in 1994. b. Savings accounts earn interest, whereas checking accounts do not. c. Congress must recognize that the growing national debt is the most serious problem that the country faces. d. The unemployment rate increases when the percentage of the labor force without jobs increases. e. The unemployment rate among teenagers is higher than the rate among adults.
If the demand curve is a vertical line, it means that:
A. regardless of price, the quantity demanded is a constant amount. B. regardless of quantity, the price is a constant amount. C. the good is inferior. D. the good has many substitutes.
Explain how a regulation requiring banks to keep a given percentage of deposits in an account paying below market interest rates at the Fed is really a tax on banks.
What will be an ideal response?