Profits of a monopoly are driven to zero
a. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses instantly
b. In the long run because the demand curve becomes more inelastic
c. In the long run because the assets eventually move from low to high valued use
d. In the short run because the demand curve becomes more elastic
c
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A monopoly creates a deadweight loss because the monopoly
A) sets a price that is too low. B) makes a normal profit. C) does not maximize profit. D) produces less than the efficient quantity. E) produces more than the efficient quantity.
Which president said, "Prosperity is just around the corner"?
A) Herbert Hoover near the start of the Great Depression B) Franklin Delano Roosevelt near the start of the Great Depression C) George W. Bush near the start of the Great Recession D) Barack Obama near the start of the Great Recession
Excess reserves equal
A) total reserves less required reserves. B) required reserves less total reserves. C) total reserves plus required reserves. D) required reserves divided by total reserves.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. Suppose that income for next year is forecasted to be $9,000 instead. What is the revised price forecast for next year?
A. $ 5 B. $15 C. $ 3 D. $18 E. none of the above