At a certain level of production, the marginal revenue and marginal cost of a monopolist are $8 and $6, respectively. Which of the following statements is true in this context?
A) The monopolist should expand production.
B) The monopolist should contract production.
C) The profits of the monopolist are maximized.
D) The profits of the monopolist are minimized.
A
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The largest revenue source in the U.S. federal tax system is the corporate income tax
a. True b. False Indicate whether the statement is true or false
When supply is ________ or the product is ________, then price is demand determined.
A. variable; unique B. variable; standardized C. fixed; standardized D. fixed; unique