A pure monopoly may generate economic profits because ________.
A. marginal revenue is constant as sales increase
B. of barriers to entry
C. of rising average fixed costs
D. of advertising
Answer: B
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The natural rate of interest is the interest rate that
A) is determined by the intersection of the IS and LM curves. B) equates investment and saving at full employment. C) equates the supply and demand for money. D) is changed only by changes in the money supply.
The development of new technology typically:
A. shifts the supply curve to the right. B. reduces profits. C. results in a downward movement along a supply curve. D. shifts the demand curve to the right.
An increase in quantity demanded of a good is caused by
A. a change of tastes. B. a decrease in the price of a substitute. C. a decrease in the price of the good. D. a decrease in income.
A firm that sells a car for $30,000 gets producer surplus of $30,000.
Answer the following statement true (T) or false (F)