Which of the following is not true of monopolists?
a. The entry of new firms is not a major concern.
b. Monopolists seek to maximize profits.
c. Monopolists can charge any price they want and make a profit.
d. Monopolists can choose any point on the market demand curve.
e. Monopolists can raise price more than 10 percent.
C
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Refer to the above figure. Which variable is autonomous with respect to real GDP?
A) real consumption spending B) the sum of real consumption and real saving C) real saving D) real investment spending
Consider the following actions undertaken by a firm:
a. charging a higher price for products of higher quality b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences c. charging different prices for products of different qualities d. charging a lower price to match a competitor's price Which of the above will be considered price discrimination? A) a, b, c, and d B) a, b, and d only C) b and d only D) b only
Perfect competition has all of the following features except
a. large number of firms b. goods that are perfect substitutes c. no barriers to entry d. brand loyalty e. firm has insignificant market share
How would each of the following events affect the level of employment and the real wage rate?(a)A tremendous boom occurs in the stock market, increasing people's wealth by $100 billion overnight.(b)A major government loan-guarantee program goes bust, losing $500 billion. To pay off the loss, the government announces that tax rates will rise 30% in the future.(c)A nuclear mishap contaminates all auto plants in the Detroit area, destroying their capital.(d)Medical science cures the common cold, causing fewer work days lost due to illness, thus greatly increasing labor productivity.
What will be an ideal response?