If a monopolist is producing the quantity at which marginal revenue equals marginal cost, it should
A. increase price and keep output unchanged if it wants to maximize profits.
B. reduce output if it wants to maximize profits.
C. increase output if it wants to maximize profits.
D. continue to produce this amount if it wants to maximize profits.
Answer: D
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Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to
A) 0.8. B) 1.8. C) 1.1. D) 0.9.
The short-run supply curve of a perfectly competitive firm is the
a. upward-sloping portion of its average total cost curve b. upward-sloping portion of its average variable cost curve c. average fixed cost curve at all levels of output d. marginal cost curve, which lies above the average variable cost curve e. downward-sloping portion of its marginal cost curve
According to many modern monetarists
A. the government can minimize economic instability by stabilizing growth of the money supply at a constant low rate. B. short-run variations in an economy's productive capacity can be predicted precisely. C. discretionary monetary policy enables the Federal Reserve System to closely control the economy. D. the money supply should grow at a rate determined by short-run economic fluctuations.
Suppose the market for shoes consists of three consumers. The accompanying table shows the quantity demanded at various prices for each consumer:PricePer PairPairs Demandedby PatPairs Demandedby LeighPairs Demandedby Chris$100010$75031$50173$302105The data suggest that Leigh:
A. has a greater demand for shoes than either Pat or Chris does. B. has a higher income than either Pat or Chris do. C. does not experience diminishing marginal utility. D. prefers shoes to other items that are for sale.