Why doesn't a monopoly have a supply curve?
What will be an ideal response?
A monopoly does not have a supply curve because the amount that a monopoly produces depends on both its marginal cost curve and on the shape of the demand curve it faces. Thus, since its profit-maximizing output is not independent of its demand curve, the monopoly cannot have a supply curve.
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How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government?
a. It increases the reported deficit. b. It reduces the reported deficit. c. It exerts no effect on the reported deficit. d. It increases the deficit during an economic boom but reduces it during a recession.
Which of the following is a key characteristic of the indifference curve?
A. Indifference curves can cross to show transitivity of products. B. As more of one good is consumed more of the other good must also be consumed. C. Indifference curves are concave to the origin. D. Indifference curves further from the origin are preferred to those closer to the origin.
Refer to the below table and information. How would the imposition of a $9 minimum wage rate change the total amount of labor hired in this market?
Suppose a single firm has the marginal revenue product schedule for a particular type of labor given in the left table. Assume there are 150 firms with the same marginal-revenue-product schedules for this particular type of labor.
A. Employment would decrease by 150 to 600 workers total
B. Employment would increase by 150 to 750 workers total
C. Employment would decrease by 150 to 750 workers total
D. Employment would increase by 150 to 900 workers total
The marginal propensity to save plus the marginal propensity to consume always equals 1
a. True b. False Indicate whether the statement is true or false