The cost of dispensing fluoxetine (the generic for Prozac) is about $5 to $10 per prescription, but the consumer's price at most pharmacies is about $85. This suggests that the market for prescription drugs is:
A. a pure monopoly.
B. something that cannot be explained by economic theory.
C. not very competitive.
D. perfectly competitive.
Answer: C
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Refer to Figure 12-9. At price P3, the firm would
A) lose an amount less than fixed cost. B) lose an amount more than fixed cost. C) break even. D) lose an amount equal to its fixed cost.
For a monopolist,
a. marginal revenue and price are constant as quantity increases b. marginal revenue falls but price is constant as quantity increases c. marginal revenue is constant but price falls as quantity increases d. both marginal revenue and price fall as quantity increases, but price falls faster e. both marginal revenue and price fall as quantity increases, but marginal revenue falls faster
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The double coincidence of wants is a much practiced transaction modem in the U.S. today
Indicate whether the statement is true or false