Picture in your mind's eye the graph of a profit-maximizing monopolist. If its cost curves—both ATC and MC—shift upward while its demand curve remains unchanged, the monopolist will
a. decrease price and increase output
b. decrease both price and output
c. increase price and decrease output
d. increase both price and output
e. keep both price and output at the same level
C
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According to the theory of purchasing power parity, the real exchange rate between two currencies will equal ________ in the long run.
A. 1. B. the nominal exchange rate C. the ratio of the rates of inflation of the two currencies. D. 0.
When the U.S. capital and financial account shows a positive balance, that is an indication of
A) the United States acquiring more foreign reserves. B) the value of U.S. exports of capital goods exceeding the value of U.S. imports of capital goods. C) foreigners investing more in the United States than the United States is investing abroad. D) U.S. industries becoming more competitive. E) the value of all U.S. exports exceeding the value of all U.S. imports.
So long as a monopolist finds itself in the situation where price is greater than average fixed cost at the profit-maximizing (loss-minimizing) level of output, the firm should continue to operate to minimize its losses
Indicate whether the statement is true or false
Making use of an economic model is a process of
A) solving hundreds of simultaneous equations. B) running experiments to determine how changes in the endogenous variables will change the exogenous variables. C) running experiments to determine how changes in the exogenous variables will change the endogenous variables. D) resolving inconsistencies in the actions of economic agents.