If a single-price monopolist sets price where the price elasticity of demand exactly equals 1, its
A) total profits are at a maximum.
B) total revenue is at its maximum.
C) total revenue is rising, although marginal revenue is falling.
D) total revenue is falling.
E) marginal revenue is always positive.
Ans: B) total revenue is at its maximum.
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Long-run equilibrium for a monopolistic competitor is characterized by
A) a price exceeding marginal cost. B) marginal cost pricing. C) economic profits. D) too few firms in the industry.
At higher nominal rates of interest, the demand for real balances is:
a. higher because savers can earn higher returns. b. lower because the opportunity cost of holding those funds is higher. c. invariant with respect to the nominal interest rate. d. inversely related to the price level.
If you want to vote for the management of the corporation, you should buy
A) common stock. B) preferred stock. C) bonds. D) either common stock or preferred stock.
Refer to the information provided in Table 3.1 below to answer the question(s) that follow. Table 3.1Price per PizzaQuantity Demanded (Pizzas per Month)Quantity Supplied (Pizzas per Month)$31,200 600 61,000 700 9 800 80012 600 90015 4001,000Refer to Table 3.1. In this market there will be an excess supply of 600 pizzas at a price of
A. $3. B. $6. C. $12. D. $15.