Refer to the table. Assume that this monopolist faces zero production costs. The profit- maximizing monopolist will set a price of:
Answer the question on the basis of the following table showing the demand schedule facing a nondiscriminating monopolist:
A. $10.
B. $7.
C. $5.
D. $3.
C. $5.
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The idea that policy actions have no real effects in the short run if they are anticipated and no real effects in the long run is called the
A) adaptive proposition. B) activism proposition. C) Keynesian proposition. D) policy irrelevance proposition.
A natural monopoly exists when one large firm can produce a product at a lower per unit cost than can smaller firms
a. True b. False Indicate whether the statement is true or false
Discretionary monetary policy is when the monetary authority:
a. does not commit to future monetary actions. b. never produces a monetary surprise to households. c. commits to future monetary actions. d. always behaves in a predictable way.
If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements. B) unrelated. C) perfect substitutes. D) not desirable.