The monopolist shown in the above graph
A. is making a profit.
B. is taking a loss.
C. is breaking even.
D. may be making a profit or breaking even.
A. is making a profit.
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Which of the following would force a monopoly to charge a lower price?
A) A new firm selling the same enters the market. B) A new firm selling the same product locates close to the monopoly. C) A new firm introduces a better substitute for the firm's product. D) All of the above.
Who pays taxes and who receives government spending? Explain
What will be an ideal response?
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and current international transactions balance in the context of the Three-Sector-Model? a. The GDP Price Index falls and current international transactions
balance becomes more negative (or less positive). b. The GDP Price Index rises and current international transactions balance becomes more negative (or less positive). c. The GDP Price Index and current international transactions balance remain the same. d. The GDP Price Index rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If an economy is closed and if it has no government, then
a. national saving = 0. b. national saving = private saving. c. public saving = investment. d. gross domestic product = consumption.