The monopolist is a
A) price taker who tries to find the profit-maximizing rate of output.
B) price taker who tries to find the profit-maximizing price.
C) price searcher who tries to find the profit-maximizing price-output combination.
D) price searcher who tries to find the rate of output that maximizes price.
Answer: C
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Which of the following is true at the equilibrium level of income?
a. Unplanned inventory changes are positive. b. Firms are unable to produce the desired rate of output. c. Autonomous consumption spending is equal to induced consumption spending. d. Aggregate expenditures equal real GDP. e. Unplanned investment spending is positive.
If government policy encouraged households to save more at each interest rate, then
a. the real exchange rate and net exports would rise. b. the real exchange rate and net exports would fall. c. the real exchange rate would rise and net exports would fall. d. the real exchange rate would fall and net exports would rise.
This monopolist
A. is in the short run.
B. is in the long run.
C. may be in the short run or the long run.
Compared to a competitive industry, a monopoly transfers
A) deadweight loss away from producers to consumers. B) deadweight loss away from consumers to producers. C) producer surplus to consumers. D) consumer surplus to producers.