What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit?
What will be an ideal response?
A single-price monopoly firm maximizes profit by producing an amount of output so that marginal cost equals marginal revenue (MR = MC).
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List three changes that lead to a shift of the aggregate supply curve. Discuss why each change shifts the aggregate supply curve and in which direction the curve shifts
What will be an ideal response?
The introduction of sweep accounts
A) was an open market purchase. B) was a failure. C) had no effect. D) caused a reduction in the demand for money.
The Taft-Hartley Act made all of the following illegal EXCEPT
A) jurisdictional disputes. B) the Congress of Industrial Organizations. C) make-to-work laws. D) closed shops.
One way tariffs differ from quotas is that
A) tariffs produce revenues for the importing country's government. B) quotas produce revenues for the exporting country's government. C) tariffs produce no revenues but set limits on the imported items. D) tariffs are applied only on raw materials.