Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where ________.
A. marginal cost equals average revenue
B. average total cost equals average revenue
C. marginal revenue equals average cost
D. marginal revenue equals marginal cost
Answer: D
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The demand for money will fall for each of the following reasons, except
A) more ATMs. B) higher real GDP. C) lower interest rates on transactions accounts at banks. D) more risky banks.
A principal-agent problem occurs when
a. either a seller or buyer of labor is able to exercise a personal interest that undermines market efficiency b. wage rates are greater than efficiency wages c. wage rates are less than efficiency wages d. agents representing professionals in a labor market exercise excessive negotiating power e. agents representing professionals in a labor market are unable to represent their clients in a manner that generates maximum returns to the client
An increase in quantity supplied
a. results in a movement downward and to the left along a fixed supply curve. b. results in a movement upward and to the right along a fixed supply curve. c. shifts the supply curve to the left. d. shifts the supply curve to the right.
If the Fed sells more bonds to the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. If the Fed sells more bonds to the public, then the money supply will shift to the left.