When the monopolist decides to supply a given amount to the market, it will:
A. set the price equal to marginal cost.
B. set the price higher than what demanders are willing to pay for that amount.
C. only sell that amount if it charges what the demanders are willing to pay for that amount.
D. set the price lower than the demand curve to create a perceived shortage.
C. only sell that amount if it charges what the demanders are willing to pay for that amount.
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Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers?
A) a fall in the cost of the components used to assemble personal computers B) a change in the expected future price of a personal computer C) an advance in the technology used to produce personal computers D) an increase in the number of firms producing personal computer E) a rise the price of a personal computer
Firm A and Firm B produce the same goods but with different inputs. If the inputs used by firm A are more easily available than the inputs used by firm B, then which of the following statements is true?
A) The elasticity of supply of firm A and firm B will be equal. B) The elasticity of supply of firm A will be higher than the elasticity of supply of firm B. C) The elasticity of supply of firm A will be lower than the elasticity of supply of firm B. D) The elasticity of supply of firm A and firm B cannot be compared without information on price change.
All else held constant, as the variance of a payoff increases, the
A) expected value of the payoff increases. B) risk of the payoff increases. C) expected value of the payoff decreases. D) risk of the payoff decreases.
An unexpected reduction in inflation would tend to benefit which of the following?
A. neither creditors nor debtors B. debtors C. creditors and debtors D. creditors