Why is there a supply point and not a supply curve for a monopolist?
a. A monopolist cannot affect the market price by changing its supply.
b. A monopolist produces a homogeneous product having similar substitutes.
c. A monopolist equates the price which it charges with its marginal cost.
d. There is only one quantity and price at which a monopolist operates.
e. A monopolist supplies to a large number of consumers.
d
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Taxes, savings, and imports tend to magnify the effect of any spending change in the economy; that is, if investment spending initially increases, then spending will grow even more as taxes, savings, and imports increase, so the economic growth will
accelerate. Indicate whether the statement is true or false
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output. B) decrease output. C) continue to produce its current output. D) shut down.
What is crowding out?
a. when government borrowing uses up financial capital leaving more for private investors b. when government borrowing leaves more financial capital for private investors c. when government borrowing uses up financial capital leaving less for private investors d. when government borrowing leaves less financial capital and private investors borrow more
There is a strong consensus among economists in favor of free trade. Governments appreciate the reasons for free trade as well but they may sometimes restrict trade because
a. their absolute advantage is greater than their comparative advantage b. their comparative advantage is greater than their absolute advantage c. the trade generates negative gains d. they may want to protect infant industries e. they prefer dumping to trade