Consider a monopoly who posts an economic profit of $10,000,000. All else equal, this monopolist should expect
A) entry into its market, prices to fall, profits to fall.
B) no entry into its market, prices to remain the same, profits to remain the same.
C) exit from its market, prices to rise, profits to rise.
D) entry into its market, the need to increase price, profits to remain the same.
B
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An import ban results in
A) an increase in the product's price. B) a decrease in the quantity of the product bought and sold. C) a decrease in the supply of the product. D) all of the above.
Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X ? M = ?$500; depreciation = $200; transfer payments = $800, net domestic product is _____.
a. $5,700. b. $5,500. c. $6,900. d. $6,200. e. $6,400.
The difference between the MPC and the APC is that the MPC is the
What will be an ideal response?
In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.
A. buys; increases B. sells; increases C. sells; decreases D. buys; decreases