Other things being equal, the behavior of a monopolist differs from that of a competitive industry in that
A. the monopolist does not attempt to maximize economic profit.
B. the monopolist must consider fixed costs in deciding the optimal level of output to produce in the short run.
C. the monopolist hires more labor.
D. the monopolist restricts output and hires less labor.
Answer: D
You might also like to view...
Exchange rate fundamentals, such as the income level, interest rates, and the price levels,:
A. affect exchange rates, but only in the short run. B. affect exchange rates but are not as important as expectations in the long run. C. do not affect exchange rates in the short run or the long run. D. affect exchange rates and are more important than expectations in the long run.
Banks can hold required reserves either as cash or as deposits at the Fed.
Answer the following statement true (T) or false (F)
When the value of a payment is adjusted in proportion to changes in the CPI, economists refer to that as
a. nominalization b. realization c. indexation d. stabilization e. depreciation
Producers of paper products are most likely to be in favor of
A. Free trade in the paper product market but protectionism in the lumber market. B. Protectionism in the paper product market but free trade in the lumber market. C. Free trade in the paper product market and the lumber market. D. Protectionism in the paper product market and the lumber market.