"A single-price monopolist charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is partially correct because a monopolist charges a higher price than a perfectly competitive industry. However the statement also is partially incorrect because the monopolist produces less output than a perfectly competitive industry.
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When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent
When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent. A) 50; 50 B) 33; 33 C) 33; 50 D) 40; 40
What is the "inflation tax"?
A) the difference between nominal and real interest rates received on financial assets, due to inflation B) the fact that our tax system is based on nominal incomes and not real incomes, so that the government collects more taxes due to inflation alone C) the government obtaining goods in exchange for newly created high-powered money that does not add to the real value of private assets due to the resulting inflation D) the fact that greater government spending leaves fewer goods available to the private sector, thus lowering their prices.
The official reserve transactions balance in the United States balance of payments accounts is
a. reflects the difference between government spending and total taxes. b. negative if a current account deficit exceeds a capital account surplus. c. positive if a current account deficit exceeds a capital account surplus. d. none of the above
How many units should Harvey's Housewares produce?
a. 1 unit b. 2 units c. 3 units d. Zero units, at these prices, the production should not start