A monopolist's supply of a good is
A. dependent on the monopolist's demand curve and its marginal cost curve.
B. given by the portion of the monopolist's marginal cost curve that lies above the average variable cost curve.
C. given by the portion of the monopolist's average variable cost curve that lies above the marginal cost curve.
D. independent of the monopolist's demand curve.
Answer: A
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Refer to Edgeworth Box Economy. Analysis of an Edgeworth box economy shows that a competitive equilibrium
a. must be Pareto optimal. b. can be located anywhere along the contract curve. c. may lie anywhere within the region of mutual advantage. d. must lie to the southeast of the endowment point.
Supply can shift due to changes in price.
Answer the following statement true (T) or false (F)
In the figure above, the demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the government imposes a rent ceiling of $300 per month. In the short run there will be
A) a shortage of 500,000 apartments. B) a shortage of 400,000 apartments. C) a shortage of 200,000 apartments. D) no shortage nor a surplus of apartments.
Refer to Figure 10.1. If the level of real GDP is initially Y2, firms will ________ production until equilibrium is reached at ________
A) increase; Y2 B) decrease; Y2 C) increase; Y1 D) decrease; Y1