If marginal costs increase, a monopolist will:
A. decrease price and increase output.
B. decrease both price and output.
C. increase price and decrease output.
D. increase both price and output.
Answer: C
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The price elasticity of a vertical demand curve is always
a. infinitely large. b. zero. c. one. d. increasing as price increases.
Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price
a. True b. False Indicate whether the statement is true or false
Suppose that Figure 10.5 shows a monopolist's demand curve, marginal revenue, and its cost. At the profit maximizing output level and price, the consumer surplus would be:
A. $2,450. B. $1,225. C. $612.50. D. $262.50.
Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory
What will be an ideal response?