If a monopolist has downward sloping average costs, he will not produce if he cannot price discriminate.
Answer the following statement true (T) or false (F)
False
Rationale: So long as average cost does not lie fully above demand, the monopolist will produce.
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Using Figure 15.1, identify which demand curve would belong to that of a purely competitive firm and which would belong to a monopolistically competitive firm and explain your reasoning
What will be an ideal response?
The Keynesian revolution
a. was an attack on the classical supply-determined, full-employment theory of output and employment. b. attacked the quantity theory of money. c. shared with the classical model the belief that prices and wages are perfectly flexible. d. All of the above e. both a and b.
The amount of labor a firm employs depends on
A) the market wage. B) the market price for the good produced. C) Both A and B. D) None of the above.
A takeover of one firm by another
A. ties up the nation’s capital wastefully. B. uses up the economy’s credit supply. C. reduces the value of the acquired firm. D. changes the ownership of the acquired firm.