Refer to the above figure. The profit-maximizing price and output for this monopolist are
A) a price of P1 and output of Q1.
B) a price of P4 and output of Q1.
C) a price of P2 and output of Q2.
D) a price of P3 and output of Q3.
A
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Which of the following would make a reasonable hypothesis to test?
A) Rising inflation is bad for the U.S. economy. B) An inflation rate above 4% is dangerous for the British economy. C) As interest rates increase, eventually the inflation rate will decline. D) Increases in inflation are worse for the U.S. economy than are increases in public sector borrowing.
If the nominal interest rate is higher than the real interest rate, then inflation must be:
A. zero. B. higher than the nominal rate of interest. C. positive. D. negative.
Which of the following firms could raise prices and expect an increase in revenues?
(A) A firm whose product has an elasticity of 3.1. (B) A firm whose product has an elasticity of 1. (C) A firm whose product has an elasticity of 0.31. (D) All firms regardless of the elasticity of their products.
Deregulation:
A. tends to improve outcomes in industries generating substantial negative externalities. B. eliminates regulatory capture and can improve outcomes by increasing competition. C. is most appropriate to undertake by government agencies responsible for human safety, financial regulation, and environmental protection. D. always generates greater economic efficiency.