Which of the following is true for a monopolist?
A) Being the only seller in the market, the monopolist faces the market demand curve.
B) Being the only seller in the market, the monopolist faces a perfectly elastic demand curve.
C) Being the only seller in the market, the monopolist faces a downward-sloping demand curve that lies below the marginal revenue curve.
D) Being the only seller in the market, the monopolist faces a perfectly inelastic demand curve.
A
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The quantity theory of money predicts that, in the long run, inflation results from the
A) money supply growing at a faster rate than real GDP. B) velocity of money growing at a faster rate than real GDP. C) velocity of money growing at a lower rate than real GDP. D) money supply growing at a lower rate than real GDP.
The equilibrium real wage is 25, the money supply equals 15, and k equals 3 . If equilibrium output is 10 then the equilibrium nominal wage is
a. 3. b. 4.5. c. .22 d. 5
Figure 5.4In Figure 5.4, supply is perfectly inelastic in graph:
A. A. B. B. C. C. D. D.
The more profits are reinvested into the firm, the
A) less there is available to distribute to bondholders. B) less there is available to distribute to stockholders. C) more the firm will be able to raise in sales of new issues to stock. D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders.