Why is a monopolist a price maker?
What will be an ideal response?
A monopolist faces a down sloping demand curve and has total control over the amount of a product that is supplied. Thus the monopolist essentially sets the price by what level of production it chooses. In this way, the monopolist is a price maker.
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The impact of an increase in the gasoline tax on SUV sales is
A) a macroeconomics topic because it deals with taxes. B) a microeconomics topic because it deals with one industry. C) not an economic issue, but rather a political issue. D) insignificant.
Suppose the price elasticity of demand for iPods is inelastic. What would you expect about the demand elasticity for workers producing iPods? Explain
What will be an ideal response?
A lawn mower costs $500 in the US and 8188 Mexican Pesos in Mexico. The current exchange rate is 1USD=12.97MXN. At this rate,
a. The good costs more in the US b. The good costs more in Mexico c. The good costs the same across the two countries d. None of the above
In response to Economist Jeffrey Sachs' big push theory:
A. NATO funded 13 Millennium Villages. B. the U.S. funded half of NATO's village project. C. the UN developed 8 Millennium Development Goals. D. the UN declared a moratorium on all foreign aid.