Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly. Which of the following statements comparing the conditions in the industry under both market structures is true?
A) A monopoly will produce less and charge a lower price than would a perfectly competitive industry producing the same good.
B) A monopoly will produce more and charge a higher price than would a perfectly competitive industry producing the same good.
C) A monopoly will produce more and advertise more than would a perfectly competitive industry producing the same good.
D) A monopoly will produce less and charge a higher price than would a perfectly competitive industry producing the same good.
D
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The Board of Governors of the Federal Reserve has ________ members.
A. 14 B. 9 C. 5 D. 7
When the value of exports exceeds the value of imports then
A) changes in productivity will occur. B) international trade is in balance. C) the country is running a trade deficit. D) the country is running a trade surplus.
Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your:
A. Real wage has increased to $21 B. Real wage has decreased to $15.24 C. Nominal wage has increased to $21 D. Nominal wage has decreased to $15.24
If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with a(n):
A. Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rises B. Decrease in short-run aggregate supply, so output increases and the price level rises C. Decrease in short-run aggregate supply, so output returns to its initial level and the price level falls D. Increase in short-run aggregate supply, so output increases and the price level rises