One of the popular myths about monopoly is that:
a. a monopolist is the single seller of a particular commodity.
b. a monopolist can charge any price for his/her good.
c. a monopolist is a price maker.
d. a monopolist may earn positive profits even in the long run.
e. a monopolist faces the market demand curve.
b
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Labor productivity can be increased if
A) the government mandates it. B) the standard of living declines. C) people spend less time developing skills before entering the workforce. D) there is an increase in capital goods.
A production possibilities frontier indicates the most efficient combinations of goods
a. True b. False Indicate whether the statement is true or false
An economist estimates that the price elasticity of demand for disposable diapers is 0.67. This suggests that disposable diaper producers could:
A. advertise more to raise the price elasticity of demand. B. encourage more parents to use cloth diapers. C. lower the price of disposable diapers to raise more revenue. D. raise the price of disposable diapers to raise more revenue.
The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is
A. 5% higher in year 2 than in year 1. B. 105% higher in year 1 than in year 2. C. 105% higher in year 2 than in year 1. D. 5% higher in year 1 than in year 2.