The monopolist, like the perfect competitor, maximizes profits at the output where marginal revenue equals marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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Adam Smith’s discussion of the production in a pin factory illustrates the law of comparative advantage.
Answer the following statement true (T) or false (F)
The logical principle for maximization can be stated as follows:
A) Do it if it feels good. B) Do it if the benefit from doing it is greater than the cost of doing it. C) Do it unless it's illegal, immoral, or fattening. D) Do it whenever the marginal benefit equals the marginal cost.
The government used the Herfindahl-Hirschman index to determine if a proposed merger will lead to excessive concentration.
Answer the following statement true (T) or false (F)
Consider an economy where the money supply is growing at 7 per cent per year and velocity is constant. Which of the following statements about real GDP growth and the inflation rate could be TRUE if the Quantity Theory of Money holds?
A. Real GDP is growing at 2 per cent and inflation is 5 per cent. B. Real GDP is growing at 7 per cent and inflation is 7 per cent. C. Real GDP is growing at 2 per cent and inflation is 9 per cent. D. Real GDP is growing at 9 per cent and inflation is 2 per cent.