An import quota will make the supply curve for the imported good
A. unitary elastic.
B. perfectly inelastic.
C. negatively sloped.
D. perfectly elastic.
Answer: B
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The practice of charging different prices to different consumers of the same product is called
a. monopolistic pricing b. unit pricing c. price discrimination d. elasticity pricing e. marginal cost pricing
Comparing the monopolist to the perfect competitor,
A. only the monopolist produces where MC equals MR. B. both have downward-sloping demand curves. C. only the perfect competitor will make an economic profit in the long run. D. only the monopolist will make an economic profit in the long run.
The traditional Phillips Curve suggests that, if government uses an expansionary fiscal policy to stimulate output and employment:
A. unemployment may actually increase because of the crowding-out effect. B. tax revenues may increase even though tax rates have been reduced. C. deflation may result. D. the natural rate of unemployment may
Monopolies can earn positive economic profits in the long run while monopolistically competitive firms cannot due to
A. economies of scale in monopolies but not in monopolistic competition. B. the less elastic demand faced by monopolies as compared to monopolistically competitive firms. C. market power of monopolies while monopolistically competitive firms have no market power. D. barriers to entry in monopoly but not in monopolistic competition.