A monopolist maximizes profit by producing an output level where marginal cost equals price
a. True
b. False
Indicate whether the statement is true or false
False
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In the tourist-trap model, a consumer might pay more than marginal cost for a good sold in a competitive market if the cost of possibly finding the good cheaper is more than the markup over marginal cost
Indicate whether the statement is true or false
Total revenue decreases as output increases when demand is:
A. downward sloping. B. perfectly elastic. C. price inelastic. D. price elastic.
Melissa offers you $1,000 today or $1,500 in 5 years. You would prefer to take the $1,500 in 5 years if the interest rate is
a. 8 percent. b. 9 percent. c. 10 percent. d. All of the above are correct.
An expansionary fiscal policy is likely to
A) increase borrowing by the Treasury through the sale of bonds. B) decrease borrowing by the Treasury through the purchase of bonds. C) increase borrowing by the Treasury through the purchase of bonds. D) decrease borrowing by the Treasury through the sale of bonds.