Which of the following equations represents GDP for an open economy?
a. Y = C + I + G + NX
b. NX = I - G
c. I = Y - C + G + NX
d. Y = C + I + G
a
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A natural monopoly
A) faces more competition after regulation. B) might exaggerate its costs if it is regulated using rate of return regulation. C) might falsely minimize its costs if it is regulated using rate of return regulation. D) might falsely minimize its costs if it is regulated using a marginal cost pricing rule. E) is allowed to maximize its profit under a marginal cost pricing rule.
Suppose a perfectly competitive market results in a long-run equilibrium price of $8 and quantity of 500. If this same market were a monopoly, which of the following price and quantity combinations would be the most likely?
A. Price: $10, Quantity: 350 B. Price: $8, Quantity: 500 C. Price: $6, Quantity: 650 D. Price will equal marginal revenue and quantity will be found where marginal revenue equals marginal cost.
If MC>MR, the firm should produce
A. more than this quantity. B. zero. C. at this quantity. D. fewer than this quantity.
When a monopoly perfectly price discriminates, there is ________
A) no producer surplus B) an increase in supply C) no consumer surplus D) a large consumer surplus