Figure 11-9
In Figure 11-9, how much more than the long-run competitive price will the profit-maximizing monopolist charge?
a.
$1
b.
$2
c.
$3
d.
$11
c
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Name the four factors of production that determine the quantity of real GDP supplied. Which one fluctuates the most over the course of the business cycle?
What will be an ideal response?
If increased supply leads to lower prices, why is rapid growth of the money supply usually accompanied by high interest rates?
What will be an ideal response?
If a stock or bond is risky
a. risk averse people may be willing to hold it as part of a diversified portfolio. b. risk averse people may be willing to hold it if the expected return is high enough. c. both A and B are correct. d. risk averse people will not hold it.
Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A. the marginal cost curve of a monopolist is different from that of a perfectly competitive firm. B. monopolies are interested in economic profits and competitive firms are not. C. the economies of scale exist only in perfectly competitive industries. D. the monopolization of a perfectly competitive industry does not change the cost structure of the industry.