The Lend Me Your Ears Company monopolizes the production of a specialized hearing aid. The Lend Me Your Ears Company will find it profitable to reduce output as long as marginal cost is
A. less than marginal revenue.
B. positive.
C. equal to marginal revenue.
D. greater than marginal revenue.
Answer: D
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Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Say's law states that demand creates its own supply
Indicate whether the statement is true or false
According to economist Benjamin Friedman, sustained economic growth can make people more willing to work toward improving the environment and reducing poverty
Indicate whether the statement is true or false
Suppose that labor is the only productive resource needed. Scotland has a comparative advantage in producing firewood, while Iceland has a comparative advantage in producing wool. If the two nations trade with each other,
A. Scotland should export wool and Iceland should export firewood. B. Scotland should export both wool and firewood. C. Scotland should export firewood and Iceland should export wool. D. Iceland should export both wool and firewood.