A monopolist
A. faces a demand curve that is more elastic than the demand curve for the industry.
B. is constrained in its pricing decisions by the demand curve it faces.
C. can charge whatever price it wants because it is the only firm producing the good.
D. can usually keep price equal to marginal revenue by lowering the price on the last unit sold only.
Answer: B
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Autonomous expenditure is a type of expenditure that does not depend on
A) GDP. B) wealth. C) expectations. D) rates.
Suppose Jo's savings after working for 2 years is $90,000 . Assuming she saves all of her income and the rate of growth of her income is constant at 10 percent over the 2-year period, her initial annual income must have been around _____
a. $49,630 b. $36,980 c. $65,897 d. $74,380
The desire to redistribute income more fairly was one of the major motivations for ______.
a. the Russian Revolution b. the American Revolution c. World War I d. World War II
Economic growth is only possible if the long-run aggregate ______ curve shifts to the ______.
A. supply; right B. supply; left C. demand; right D. demand; left