Which of the following statements is true regarding a simple pricing rule for monopoly and monopolistic competition?
A. P[EF/(1 + EF)] = MC
B. P[(1 + EF)/EF] = MC
C. P = [(1 + EF)/EF]MC
D. All of the statements associated with this question are correct.
Answer: B
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Answer the next question on the basis of the information in the following table.Money SupplyMoney DemandInterest RateInvestment (at interest rate shown)$400$6002%$7004005003600400400450040030053004002006200Suppose the legal reserve requirement is 10% and initially there are no excess reserves in the banking system. If the Fed wished to reduce the interest rate by 1 percentage point, it would ________.
A. sell $100 of government bonds in the open market B. sell $10 of government bonds in the open market C. buy $100 of government bonds in the open market D. buy $10 of government bonds in the open market
Refer to Figure 13-11. What is the monopolistic competitor's profit maximizing output?
A) Q1 units B) Q2 units C) Q3 units D) Q4 units
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
A key for a monopoly that wants to practice price discrimination is to be able to control the resale of its product
a. True b. False Indicate whether the statement is true or false