The rate of inflation and the purchasing power of money are
A) positively related.
B) totally unrelated.
C) inversely related.
D) randomly related.
C
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Use the figure below to answer the following question.
What is the amount of total surplus (for society) after the government imposes the excise tax on the market?
A. $32 B. $96 C. $100 D. $64
The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?
A) price charged of $900 and quantity produced of 1 B) price charged of $800 and quantity produced of 2 C) price charged of $700 and quantity produced of 3 D) price charged of $600 and quantity produced of 4
One reason firms in monopolistic competition can charge different prices is that their products are
a. identical. b. similar. c. differentiated. d. guaranteed.
Firms are assumed to
a. maximize profit per unit of output b. maximize total revenue c. maximize assets d. produce at the lowest point on their average total cost curve e. maximize profit