Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
A) P = MC
B) P = MR
C) MR = MC
D) MC = ATC
E) P > ATC
C
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If the expected inflation rate is unchanged, a fall in the natural rate of unemployment would
A) shift the short-run Phillips curve to the right. B) not shift the short-run Phillips curve. C) shift the short-run Phillips curve to the left. D) shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.
What is the shape of the AS in the short run and the long run?
a. AS is relatively flat in both the short and long run. b. AS is relatively flat in the short run, but steeper in the long run. c. AS is relatively steep in both the short and long run. d. AS is relatively steep in the short run, but flatter in the long run.
Exhibit 10-4 Supply and demand curves for food servers
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In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n):
A. new labor market equilibrium. B. excess demand for labor of 10 thousand food servers. C. excess supply of labor of food servers. D. situation of full employment for food servers.
Monopolistic competition is characterized by firms:
A. producing at optimal productive efficiency. B. making economic profits in the long run. C. producing where price equals marginal cost. D. producing differentiated products.