A monopoly will be maximizing profits if it is operating at the point where:
a. price is at a maximum.
b. average cost is at a minimum.
c. average cost is at a maximum.
d. marginal cost is at a minimum.
e. marginal revenue = marginal cost.
e
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Refer to Figure 6-4. The inelastic segment of the demand curve
A) is coincident with the horizontal axis. B) lies below the midpoint of the curve. C) lies above the midpoint of the curve. D) is coincident with the vertical axis.
When the money supply rises by 10%, in the short run, output ________ and the price level ________
A) rises; is unchanged B) declines; falls C) is unchanged; falls D) declines; is unchanged
Jared declines to purchase a new bicycle priced at $200 . Therefore: a. Jared does not enjoy riding a bicycle
b. the expected marginal benefit of the bicycle to Jared exceeds $200 that could be spent on other things. c. the expected marginal benefit of the bicycle to Jared is less than $200. d. None of the above is true.
Samuelson and Solow argued that a combination of low unemployment and low inflation
a. was impossible given the historical data as summarized by the Phillips curve. b. could be achieved with an "appropriate" fiscal policy. c. could be achieved with an "appropriate" monetary policy. d. could be achieved with an "appropriate" mix of monetary and fiscal policies.