For the monopoly in the above figure, if the firm is currently producing 700 units, which of the following is correct?
A) It could earn higher profits if it produced more units each day.
B) It could earn higher profits if it produced fewer units each day.
C) It is maximizing its profits.
D) It is incurring a loss.
B
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According to this Application, the decline in population resulting from the Black Death caused the ________ curve for labor to shift to the ________
A) supply; left B) demand; right C) supply; right D) demand; left
Adam Smith's behavioral assumption about humans was that people
A) usually act in a rational, self-interested way. B) are consistently greedy. C) typically act irrationally. D) typically act randomly.
If external benefits are taken into account in the market
A. the supply curve would shift to the left. B. the demand curve would shift to the right. C. the supply curve would become vertical. D. the demand curve would shift to the left.
The simple deposit multiplier is the ratio of the amount of
A) new reserves created by the banks to the amount of deposits. B) new reserves created by the banks to the amount of loans. C) deposits created by the banks to the amount of new reserves. D) loans issued by the banks to deposits created by the banks.