The supply curve for a monopolist:
a. is upward sloping
b. is vertical
c. is equal to the MC curve above AVC
d. is equal to the MR curve above the AVC
e. none of the above
Ans: e. none of the above
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Refer to Figure 4.4. The international capital market will be in equilibrium when the real interest rate in the United States is ________ and the real interest rate in the rest of the world is ________
A) 7%; 3% B) 5%; 7% C) 9%; 3% D) 5%; 5%
By free enterprise, we mean that:
A. individuals are free to produce those products that government agencies determine can be produced profitably. B. individual producers determine how to produce, but government agencies determine what will be produced. C. individuals may obtain resources, organize production, and sell the resulting output in any legal way they choose. D. products are provided free to those who cannot afford to buy them.
What is an individual transferable quota (ITQ)?
What will be an ideal response?
Unlike a perfectly competitive firm, a monopolistically competitive firm
A. faces a perfectly inelastic demand curve. B. can earn positive economic profit in the short run and in the long run. C. cannot earn positive economic profit even in the short run. D. has a negatively sloped demand curve.