In the two-period dynamic monopoly, if the monopolist succeeds in selling a sufficiently high quantity in the first period,
A) the second-period demand curve will lie close to the price axis.
B) the second-period demand curve will become horizontal.
C) the second-period demand curve will become unit elastic.
D) the second-period demand curve will shift substantially to the right.
D
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If the underground economy is sizable, then GDP will
a. understate the economy's performance. b. overstate the economy's performance. c. fluctuate unpredictably. d. accurately reflect this subterranean activity.
For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called
a. the life cycle. b. permanent income. c. transitory income. d. in-kind transfers.
The Single European Act was expected to create economic benefits by reducing the costs and risks of currency market transactions
Indicate whether the statement is true or false
The actual dollar value of the costs would have to be ________ the actual dollar value of the benefits for an investment in early childhood education to be justified in present value terms.
A. much less than B. much greater than C. discounted more heavily than D. at least equal to