Exhibit 8-4 Demand and cost curves for a monopolist
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As shown in Exhibit 8-4, in order to maximize its profit (or minimize its loss), what price should the monopoly charge for its product?
A. $60 per unit.
B. $90 per unit.
C. $120 per unit.
D. $150 per unit.
Answer: C
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What will be the effects of an increase in real output on the interest rate?
What will be an ideal response?
Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment, and thus ________ pressure on output
A) positive, upward B) positive, downward C) negative, upward D) negative, downward
All of the following are government purchases except
A) the salary paid to Senator John Cornyn of Texas. B) the presidential pension paid to former President George H.W. Bush. C) the purchase of a new office building for the CIA. D) the purchase of new radar tracking equipment for the Navy.
The kinked-demand curve is based upon the assumption that an oligopolist's rivals will:
A. follow both a price cut and a price increase. B. follow a price cut, but ignore a price increase. C. ignore a price cut but follow a price increase. D. ignore both a price cut and a price increase.