Refer to the table above. Which of the following statements is true of the monopolist's total revenue?
A) As the monopolist reduces the price of its product from $9 to $3, its total revenue decreases.
B) As the monopolist reduces the price of its product from $9 to $3, its total revenue increases.
C) As the monopolist reduces the price of its product from $9 to $3, its total revenue increases then decreases.
D) As the monopolist reduces the price of its product from $9 to $3, its total revenue decreases then increases.
C
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An increase in net exports will shift the aggregate expenditures curve ________.
A. downward and the aggregate demand curve rightward B. downward and the aggregate demand curve leftward C. upward and the aggregate demand curve leftward D. upward and the aggregate demand curve rightward
For any given output level, a firm's long-run costs
a. are always greater than or equal to its short-run costs. b. are usually greater than or equal to its short-run costs except in the case of diminishing returns to scale. c. are always less than or equal to its short-run costs. d. are usually less than or equal to its short-run costs except in the case of diminishing returns to scale.
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. Compared to the situation when buyers have neutral expectations, if buyers believed that fewer than 50% of used refrigerators are lemons (low-quality):
A. more plums (high-quality) used refrigerators would be on the market. B. fewer plums (high-quality) used refrigerators would be on the market. C. fewer lemons (low-quality) used refrigerators would be on the market. D. the same total number of used refrigerators would be on the market, but more of them would be plums (high-quality) used refrigerators.
The theory of regulatory behavior that suggests that regulators must consider the demands of legislators, consumers, and members of the regulated agency is called
A. the natural theory. B. the creative theory. C. share-the-gains, share-the-pains theory. D. the capture theory.