Which of the following is true of a monopolist in the long run?
A. The firm will charge a price that is equal to or greater than long-run average cost.
B. The firm will charge a price that is higher than long-run marginal cost.
C. The firm will produce that level of output at which long-run average cost is minimum.
D. both a and b
E. both b and c
Answer: D
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a. soybeans b. autos c. fast food d. oil e. local phone service
During 1981-1985, the United States pursued a restrictive monetary policy that sharply lowered inflation. At the same time, large budget deficits helped push real interest rates to an all-time high. What would you expect to happen to the value of the dollar on the foreign exchange market?
A free good is:
A) also a scarce good. B) a relatively abundant good. C) a good with no opportunity cost. D) a good with relatively low opportunity cost.
Money market mutual funds sell shares to investors and use the money to buy
A) mortgage-backed securities. B) foreign currency. C) short-term securities. D) overseas assets through foreign direct investment.