Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?
a. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist.
b. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does.
c. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost.
d. A monopolist can earn economic profit in the short run; a competitive price taker cannot.
a
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If the percentage change in quantity demanded is greater than the percentage change in price, can you determine if the demand is elastic, unit elastic, or inelastic? Explain your answer
What will be an ideal response?
As shown by the IS-LM model, there are two reasons that the Fed can lose control of the economy. One of these reasons is
A) federal funds rate can never reach zero percent. B) zero federal funds rate is not sustainable. C) household and business borrowers do not base their decision to borrow on interest rates. D) that the zero federal funds rate achieved by the Fed is irrelevant to household and business borrowers.
A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 10,000 bushels per acre per year. b. 1,200 bushels per acre per year. c. 2,000 bushels per acre per year. d. 12,000 bushels per acre per year.
In the circular flow, investment refers to spending on
a. government bonds. b. certificates of deposit. c. capital goods. d. consumer goods.