When we are in a recession, according to the sophisticated quantity theorists, an increase in M will lead to
A. a decrease in V.
B. an increase in V.
C. an increase in PQ, with most or all of that increase in P.
D. an increase in PQ, with most or all of that increase in Q.
D. an increase in PQ, with most or all of that increase in Q.
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The charge that Standard Oil engaged in "predatory pricing"
a. was the driving force behind the Supreme Court's decision to break up the company. b. makes little sense from an economic perspective. c. is still subject to debate. d. All of the above are correct. e. Only b and c are correct.
For a monopoly, for all units greater than one, the marginal revenue curve:
A. lies above the demand curve. B. lies below the average revenue curve. C. cannot be negative. D. All of these statements are true.
Which of the following statements is not correct?
a. Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs. b. Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry. c. Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry. d. Monopolistic competition is similar to perfect competition because both market structures are characterized by many sellers.
The effect on the market for heating oil of a leftward shift of supply would be
A. a shortage of heating oil. B. a surplus of heating oil. C. a decrease in the quantity of heating oil sold and in its price. D. an increase in the price of heating oil and a decrease in the quantity sold.