A monopolist can earn a positive economic profit, even in the long run
a. True
b. False
Indicate whether the statement is true or false
True
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The three broad reasons for saving, as identified by economists, relate to:
A. the life-cycle, precaution, and bequests. B. national, public, and private production. C. capital gains, capital losses, and deficits. D. consumption, investment, and exports.
Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, and output = 5000, then absorption equals
A) 5100. B) 5050. C) 4950. D) 4900.
Price elasticity of demand is the ratio of the percentage change in price of one good to the percentage change in quantity demanded of another good.
Indicate whether the statement is true or false
Refer to the above figure. The firm is currently producing at Q1. The firm should
A. increase production. B. reduce production. C. shut down. D. leave production as it is.