If a monopoly earns a loss in the short run and market conditions do not change, then it should exit the industry in the long run.
Answer the following statement true (T) or false (F)
True
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A nominal variable, such as the inflation rate or the money supply, which ties down the price level to achieve price stability is called ________ anchor
A) a nominal B) a real C) an operating D) an intermediate
One key purpose of economic regulation is
A) to force a firm to produce at the point at which marginal cost equals marginal revenue. B) to control the quality of service provided by a monopolist. C) to control the price that regulated enterprises are allowed to charge. D) to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.
In which market models are firm's demand curves different from their marginal revenue curves? a. monopoly, oligopoly, and perfect competition
b. monopoly, oligopoly, and monopolistic competition. c. monopoly and oligopoly only. d. monopoly only.
During 1929-1933, monetary policy was
a. highly expansionary and this led to an increase in the general level of prices. b. characterized by steady monetary growth, which resulted in price stability. c. characterized by a sharp reduction in the supply of money, which led to downward pressure on prices and a decline in output. d. highly expansionary and this led to a reduction in the general level of prices.