A monopoly will set price
a. at the highest price along its demand curve.
b. equal to the value at which marginal cost intersects the demand curve.
c. so that it can sell the quantity at which marginal revenue is equal to marginal cost.
d. so that it can sell the quantity at which marginal revenue is equal to zero.
c. so that it can sell the quantity at which marginal revenue is equal to marginal cost.
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A fixed exchange rate system where central banks buy and sell gold to keep exchange rates at a given level is called the:
A) fixed standard. B) flexible standard. C) fiat standard. D) gold standard.
A decrease in the availability of an important major resource such as oil shifts
a. aggregate supply right. b. aggregate supply left. c. aggregate demand right. d. aggregate demand left.
A country imposing trade restrictions can benefit only if other countries also impose trade restrictions.
Answer the following statement true (T) or false (F)
In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to
A) continue its efforts to differentiate its product. B) raise its price. C) lower its price. D) do nothing, because it will inevitably experience a decline in profits.