Monopoly firms have
a. downward-sloping demand curves, so they can sell as much output as they desire at the market price.
b. downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve.
c. horizontal demand curves, so they can sell as much output as they desire at the market price.
d. horizontal demand curves, so they can sell only a limited quantity of output at each price.
b
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The figure above shows the market for a good with an external benefit. The efficient level of production is ________ units because ________
A) 8; marginal benefit equals marginal cost B) 8; marginal cost is less than marginal social benefit C) 10; marginal cost equals marginal social benefit D) 10; marginal social benefit exceeds marginal benefit E) 8; marginal benefit equals the marginal external benefit
When government inefficiencies exist and government officials can be bribed, then
A) dead capital will not exist. B) the country will have positive economic growth. C) a bribe will increase the cost of investing in capital. D) property rights will be more secure since an official has been bribed to grant ownership to the business.
Which of the following would be considered a supply-side policy?
A. investment tax credits for businesses to encourage investment B. a decrease in the growth of the money supply C. an increase in the minimum wage that would cause consumer spending to increase D. an increase in government spending that would lead to increased aggregate demand
To find the cost of the CPI market basket in the current period we have to multiply the
A) quantities in the CPI market basket by the base period prices. B) quantities in the CPI market basket by the current period prices. C) current period quantities in the CPI market basket by the base period prices. D) current period quantities in the CPI market basket by the current period prices. E) quantities in the CPI market basket by the base period prices and then multiply by 100.