The price charged by a profit-maximizing monopolist occurs at:
A.) The minimum of the average total cost curve.
B.) The price where marginal cost equals marginal revenue.
C.) A price on the demand curve above the intersection where marginal revenue equals marginal cost.
D.) A price on the average cost curve below the point where marginal revenue equals marginal cost.
C.) A price on the demand curve above the intersection where marginal revenue equals marginal cost.
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Which of the following are typically financed in a "stock market"?
i. shares sold by a firm to finance its international growth plans ii. new mortgages for home buyers iii. credit card balances A) i, ii and iii B) ii and iii C) ii only D) i and iii E) i only
Adam Smith stressed specialization and division of labor as causes of economic growth.
Answer the following statement true (T) or false (F)
The actual time length of the short run is determined by when diminishing marginal returns start
Indicate whether the statement is true or false
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at equilibrium at the intersection of the aggregate supply curve and aggregate demand curve AD3. What policy should the Fed pursue to achieve a noninflationary full-employment level of real GDP?
A. Increase the money supply from $75 to $150 billion
B. Increase the money supply from $150 to $225 billion
C. Decrease the money supply from $225 to $150 billion
D. Make no change in the money supply