Suppose when a monopolist produces 50 units its average revenue is $8 per unit, its marginal revenue is $4 per unit, its marginal cost is $4 per unit, and its average total cost is $3 per unit. What can we conclude about this monopolist?
a. The monopolist is currently maximizing profits, and its total profits are $200.
b. The monopolist is currently maximizing profits, and its total profits are $250.
c. The monopolist is not currently maximizing its profits; it should produce more units and charge a lower price to maximize profit.
d. The monopolist is not currently maximizing its profits; it should produce fewer units and charger a higher price to maximize profit.
b
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Which of the following equations best represents the long-term real interest rate? The long-term real interest rate =
A) the short-term real interest rate + the term structure effect + the default-risk premium + the expected rate of inflation B) the short-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation C) the long-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation D) the short-term nominal interest rate - the term structure effect - the default-risk premium + the expected rate of inflation
Regarding the law of supply, which of the following statements is correct?
A) As the price of a good or service rises, the quantity supplied will increase. B) As the price of a good or service rises, the quantity supplied will decrease. C) The ceteris paribus assumption does not apply. D) As demand falls, supply rises.
In the above figure, assume the economy is in equilibrium at point d. Then the Fed decreases the money supply so that the new aggregate demand curve is AD1. In the long run, the new price level will be
A) 100. B) 120. C) 130. D) 110.
If the exchange rate moves from 10 Mexican pesos per U.S. dollar to 8 Mexican pesos per U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________.
A. depreciated; appreciated B. depreciated; depreciated C. appreciated; appreciated D. appreciated; depreciated