Referring to the above graphic, which of the following statements is FALSE?
A. The monopolist produces at Qm, and charges a price of Pm, while maximizing profits at the intersection of MC and MR.
B. The price the monopolist charges in panel (b) at Pm is lower than the price that the competitive producer charges.
C. In panel (a), a competitive situation is shown in which equilibrium is established at the intersection of D and S at point E.
D. In panel (a), the equilibrium price is Pe and the equilibrium quantity Qe.
Answer: B
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Which of the following is a primary policy tool of the Federal Reserve?
A) The federal funds rate B) Open market operations C) The prime rate D) The money supply
Price discrimination occurs when a firm sells
A) a given product at different prices at different points in time. B) a given product at different prices to different ethnic groups. C) a given product at different prices unrelated to differences in cost. D) a given product at different prices when it is produced in different colors.
An elimination heuristic makes the choice on the basis of all the categories in which the events differ
Indicate whether the statement is true or false
An adverse supply shock would
A. shift the production function up and increase marginal products at every level of employment. B. shift the production function down and decrease marginal products at every level of employment. C. shift the production function down and increase marginal products at every level of employment. D. shift the production function up and decrease marginal products at every level of employment.