According to the Keynesian aggregate expenditures model equilibrium and full employment:
a. always occur at the same income level of real GDP.
b. may differ, but there is an automatic mechanism that directs the economy toward full-employment equilibrium.
c. could never occur at the same level of real GDP.
d. do not necessarily occur at the same level of real GDP.
d
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Most firms are not monopolies in the real world because
a. firms usually face downward-sloping demand curves b. supply curves slope upward c. price is usually set equal to marginal cost by firms d. monopolies are not efficient e. there are substitutes for most goods
A price discriminating pure monopolist will attempt to charge each buyer (or group of buyers):
A. different prices to compensate for differences in the characteristics of the product.
B. the same price if per unit cost is constant for each unit of the product.
C. that price that equals the buyer's marginal cost.
D. the maximum price each would be willing to pay.
In response to changing inventories in Figure 9.8, if the economy produces at full employment of $400 billion, firms will attempt to
A. Increase employment and buy more machinery. B. Increase employment and buy less machinery. C. Reduce employment and buy less machinery. D. Reduce employment and buy more machinery.
A monopolistic competitor finds its profit-maximizing rate of output by
A. equating price and marginal revenue. B. setting average revenue equal to average total cost. C. equating marginal revenue and marginal cost. D. equating the marginal revenue from advertising with the marginal revenue from selling the good.