If a firm converts a previously competitive industry into a monopoly without any changes in the cost curves, it will:
A.) increase output and price to generate more profit.
B.) reduce output and raise price to generate more profit.
C.) keep output the same but increase price to generate more profit.
D.) reduce price and increase output to keep potential competitors from entering the industry.
B.) reduce output and raise price to generate more profit.
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Economists use the mechanism of supply and demand to study
A. inflation. B. unemployment. C. environmental protection. D. All of these responses are correct.
Refer to Scenario 5.10. If Hillary invests 30 percent of her savings in the real estate project and the remainder in Treasury bills, the expected return on her portfolio is:
A) 4 percent. B) 11.8 percent. C) 17 percent. D) 22.2 percent. E) 30 percent.
GDP could be calculated over:
A. a month. B. a quarter. C. a year. D. any time period.
Monetizing the debt causes
a. the money supply to contract. b. the money supply to rise. c. tax revenues to contract. d. tax revenues to rise.