A monopoly
A. Is one of many sellers in a given market.
B. Maximizes profits at the output level where P = MR.
C. Maximizes profits at the output level where P = MC.
D. Charges higher prices than competitive firms, ceteris paribus.
Answer: D
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Suppose that P × Y is $5,000 million a year and the quantity of money is $500 million. Then the velocity of circulation is
A) 50. B) 10. C) 500. D) 20. E) 2,500,000.
In the economic way of thinking, profit and loss can be eliminated only by
A) appropriate and effective price controls. B) careful and detailed government regulation of business. C) a total elimination of uncertainty. D) taxation. E) the confiscation of private property.
Refer to Table 9-11. With trade, what is the total gain in hat production?
A) 150 B) 300 C) 400 D) 650
Researchers have found that once workers become ineligible for unemployment insurance, they become twice as likely to take a job. From this finding we may infer that unemployment insurance causes a(n) ________ in ________ unemployment
A) decrease; structural B) increase; frictional C) increase; structural D) decrease; cyclical