In contrast to a perfectly competitive firm, a monopolist operates in the long run at a quantity of output at which:
a. P = MC.
b. MR = MC.
c. P = ATC.
d. P > MR.
d
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Increased specialization in the computer industry is evidenced by
(a) the types of government policies implemented to aid the computer industry. (b) the growth of the software industry. (c) the growth of the manufacturing industry. (d) the growth of agriculture.
Which of the following is NOT subject to a network effect?
A) the layout of the keys on your keyboard B) rotating your tires every six months C) using a fax machine D) purchasing a new high-definition DVD player
Two goods are Hicks (net) substitutes if a rise in the price of one causes a(n):
a. decline in the quantity demanded of the other holding nominal income constant. b. increase in the quantity demanded of the other holding nominal income constant. c. decline in the quantity demanded of the other holding utility constant. d. increase in the quantity demanded of the other holding utility constant.
If the government cuts taxes by $200 million and simultaneously decreases government spending by $200 million, then
A. Aggregate demand will decrease by $200 million. B. Aggregate demand in the economy will remain unchanged. C. Aggregate demand will rise because the government decrease in purchases occurs so slowly. D. People will spend only part of their tax cut, so aggregate demand will eventually rise by $200 million.