For a monopolist, marginal revenue is:
A.) Equal to price, just as it is for a perfectly competitive firm.
B.) Constant up to the rate of output that maximizes total revenues.
C.) Always less than price, after the first unit.
D.) The same as the demand curve.
C.) Always less than price, after the first unit.
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Which of the following would cause an increase in the supply of cheese?
A) an increase the price of a product that producers sell instead of cheese B) an increase in the price of cheese C) a decrease in the price of wine (assuming that cheese and wine are complements) D) an increase in the number of firms that produce cheese
Assume that a fixed exchange rate is overvalued. Describe the situation of a speculative crisis against this currency. What can the central bank do to defend the currency? Why might the alternative of devaluation be preferable?
What will be an ideal response?
The largest component of GDP in the US is typically:
a. government purchases. b. social securtity. c. consumption. d. investment. e. net exports.
Multiple levels of government are desirable because _____
a. different governmental activities are best undertaken by governments of different sizes b. many governmental activities can only be financed if taxed at multiple levels of government c. multiple levels of government provide sufficient bureaucracy to deal with the complex problems faced by today's governments d. government could not be financed adequately without local governments doing the majority of the work ensuring compliance with the tax system