Consider an unregulated monopoly in Figure 8.13. If that monopoly sets its price equal to its marginal cost, it would:

A. earn negative profits.
B. earn maximum profits.
C. earn zero profits.
D. earn small, but greater than zero, profits.


Answer: A

Economics

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When a Mexican resident buys a ukulele from a U.S. producer, there is a(n)

A) increase in the supply of dollars in the foreign exchange market. B) decrease in the supply of dollars in the foreign exchange market. C) increase in the demand for dollars in the foreign exchange market. D) decrease in the demand for dollars in the foreign exchange market.

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Answer the following statement true (T) or false (F)

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If Matt's disposable income increases from $4,000 to $4,500 and his level of saving increases from $200 to $325, it may be concluded that his marginal propensity to:

A.  Consume is .80 B.  Consume is .75 C.  Consume is .60 D.  Save is .30

Economics