Using the rule that focuses on the marginal approach to maximizing profits, a monopolist charges a price where the:
a. output sold is maximized.
b. ATC curve is minimized.
c. MR = MC.
d. MR = 0.
c
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If the market price in a perfectly competitive market is less than a firm's minimum average variable cost, then the firm's total revenue will always ________
A) exceed its total fixed cost B) be less than its total economic loss C) equal its total cost D) be less than its total variable cost
An increase in the consumer sentiment index indicates that consumers are
a. becoming more optimistic about their future income and employment prospects. b. becoming less optimistic about their future income and employment prospects. c. expecting the inflation rate to rise in the near future. d. expecting the inflation rate to fall in the near future.
If expected inflation were 3%, and the real interest rate was 6%, what sector would be worse off if the actual inflation rate turned out to be 5%
a. Businesses. b. Laborers. c. Both. d. None.
If an economy's investment outlook improves, leading to increased borrowing to finance new building projects, what is likely to happen to interest rates?
a) Interest rates will fall to 0%. b) Interest rates will fall. c) Interest rates will rise. d) Interest rates will stay the same.