Which of the following is (are) true of a monopoly? (i) A monopoly has the ability to set its price. (ii) A monopolists marginal revenue will always increase when it lowers the price of its product. (iii) A monopoly can never experience an economic loss
a. (i) only
b. (ii) only
c. (i) and (ii) only
d. (ii) and (iii) only
a
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If the Fed pursues expansionary monetary policy,
A) aggregate demand will fall, and the price level will fall. B) aggregate demand will fall, and the price level will rise. C) aggregate demand will rise, and the price level will fall. D) aggregate demand will rise, and the price level will rise.
A bank's net interest income is
A) the same as net operating income. B) the difference between interest on loans and interest expense. C) the same as net operating income before expenses. D) the difference between total interest income and interest expense.
If an active approach is followed in closing an expansionary gap, _____
a. the aggregate demand curve would shift rightward b. the aggregate demand curve would shift leftward c. the short-run aggregate supply curve would shift rightward d. the short-run aggregate supply curve would shift leftward e. there would be a movement up and to the left along the short-run supply curve
On a given short-run Phillips curve which of the following is not held constant?
a. the level of GDP b. the position of the aggregate-supply curve c. expected inflation d. the expected growth rate of the money supply