Being a monopolist in the market
A. guarantees a positive short-run profit.
B. guarantees a positive long-run profit.
C. does not contradict with the rule that profit is maximized where MR = MC.
D. All of these responses are correct.
Answer: C
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A one-year discount bond with a face value of $10,000 that is currently selling for $9400 has an interest rate of
A) 3.10%. B) 6%. C) 6.38%. D) 60%.
The mutually understood standards that people follow from experience are called norms
Indicate whether the statement is true or false
The money-creating ability of the banking system may be lowered by:
a. a decrease in the cash balances that people wish to hold. b. a fall in the overall rate of inflation. c. an increase in the excess reserves. d. an increase in total deposits. e. an increase in the reserve requirement.
If both the demand for and the supply of computers are increasing, which of the following statements is TRUE?
A) The consumer should buy a computer now since the price will be higher in the future. B) The consumer should wait and buy a computer later since the price will be lower in the future. C) The price of a computer will be the same in the future as it is now. D) It is impossible to know, given only this information, whether the prices of computers will go up or down in the future.