A monopolist has market power because it
A. Is regulated by the government.
B. Can raise price as much as it wishes and not lose any customers.
C. Faces a downward-sloping demand curve for its own output.
D. Is a price taker.
Answer: C
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In the figure above in the market for high-skilled labor, the equilibrium wage rate is
A) $16. B) $8. C) $20. D) $28.
At least one economist has suggested that even large developing-country cities are economically too small. What argument would support this contention? How would you argue against it?
What will be an ideal response?
If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:
A) 0.67. B) 1.5. C) 2.0. D) 3.0.
If the banking system's money multiplier is 4, then a $2,000 increase in checkable deposits when banks hold excess reserves will result in which of the following events?
a. The money supply will decrease b. The money supply will not change. c. The money supply will increase by exactly $8,000. d. The money supply will increase by more than $8,000. e. The money supply will increase by less than $8,000.