Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good
a. by adjusting the quantity it supplies to the market.
b. by changing its marginal cost.
c. without affecting its average total cost.
d. without affecting the quantity sold.
Ans: a. by adjusting the quantity it supplies to the market.
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The liquidity trap ________.
A. makes contractionary monetary policy less effective B. makes expansionary monetary policy less effective C. makes expansionary fiscal policy less effective D. makes contractionary fiscal policy less effective
Marginal profit is the additional profit that accrues to the firm when the output rises by one unit.
Answer the following statement true (T) or false (F)
If the federal government brings in $3 trillion in tax revenues and spends $4 trillion, the government has a budget:
A. surplus of $1 trillion. B. deficit of $1 trillion. C. surplus of $7 trillion. D. deficit of $0.75 trillion.
A fiscal policy cure for inflation might include
A. Infrastructure development. B. An increase in the reserve requirement. C. A reduction in government spending. D. Reductions in marginal tax rates for corporations and households.