Use the following graph to answer the next question.
What is the profit-maximizing quantity of output for this pure monopoly?
A. 0A
B. 0D
C. 0C
D. 0B
Answer: D
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The long run market supply curve is formed by adding up individual firm supply curves in the industry.
Answer the following statement true (T) or false (F)
If a firm's demand curve in a monopolistically competitive market is shifting left:
A. competition is likely entering with similar products. B. firms must be exiting the industry. C. economic profits must be increasing. D. None of these statements is true.
The classical model is based on the assumption that
a. all markets clear b. all demand curves are horizontal c. all supply curves are vertical d. the government's budget is always balanced e. the quantity of loanable funds demanded is independent of the interest rate
Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.