The monopoly illustrated in the figure above is unregulated and charges a single price. The deadweight loss created by the monopoly is
A) $0.
B) $22.50.
C) $45.00.
D) $90.00.
B
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If market interest rates increase, the prices of existing bonds will
A) decrease. B) not change. C) increase. D) decrease if Real GDP decreases and increase if Real GDP increases.
Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment
would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following correctly expresses the indicated relationship as an equation? A. i = 20 - 4I. B. i = 20 - .4I. C. i = 24 - .4I. D. i = 20 - 10I.
Relative to 1800, the living standard of the average person today in the United States is about _____ times higher
A. 5 B. 12 C. 20 D. 42
Under the conditions of monopolistic competition, if a firm is earning economic profits in the short run:
A. prices are higher in the long run than in the short run. B. firm profits are higher in the long run than in the short run. C. average costs of production are higher in the long run than in the short run. D. long-run economic profits are positive.