Even with market power, monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices
a. True
b. False
Indicate whether the statement is true or false
True
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The law of comparative advantage explains why
A. individuals choose specialized careers. B. firms specialize in the production of certain goods. C. nations develop strengths in certain industries. D. All of the responses are correct.
Refer to the table above. Maximum social surplus is:
A) $10. B) $12. C) $14. D) $16.
If the expected path of interest rates on one-year bonds over the next five years is 2%, 4%, 3%, 2%, and 1%, the expectations theory predicts that the bond with the lowest interest rate today is the one with a maturity of
A) one year. B) two years. C) three years. D) five years.
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following bundles are in Max's opportunity set?
A) a, b, c B) b, d, e C) a, b, d D) None of the above