A profit-maximizing monopolist will stop production while MR is still greater than MC.
Answer the following statement true (T) or false (F)
False
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Imagine that there are only two nations in the world, the United States and Mexico. If Mexico experiences a drop in the price of foreign exchange, people in Mexico will
a. have to buy more U.S. currency, because prices of imports from the United States will have increased b. end up buying less U.S. currency, because U.S. prices on goods will decrease to everyone c. be able to afford less U.S. currency, and imports from the United States will be more expensive d. be able to afford more U.S. currency, and imports from the United States will be cheaper e. be able to afford more U.S. currency, and imports from the United States will be more expensive
The marginal revenue of a price taker is
a. equal to price. b. less than price. c. more than price. d. unrelated to price.
The Soviet government in the 1980's never abandoned the ruble as the official currency. However, the people of Moscow preferred to accept
a. cigarettes in exchange for goods and services, because they were convinced that cigarettes were going to soon become hard to come by. b. American dollars in exchange for goods and services, because rubles were extremely hard to come by. c. goods such as cigarettes or American dollars in exchange for goods and services, reminding us of the fact that government decree by itself is not sufficient for the success of a commodity money. d. All of the above are correct.
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a reduction in taxes will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria
What will be an ideal response?