Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
The socially optimal level of output is ________ units per day.
A. I
B. F
C. G
D. H
Answer: D
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Which of the following explains why supply is more elastic as more time passes?
A) It is difficult or impossible to increase the quantity produced in a short period of time. B) Consumers have more time to search for substitutes. C) Sellers try to take advantage of a high price in the short term. D) The supply curve becomes generally steeper as more time passes. E) There is no explanation for this phenomenon.
When demand for goods and services is high, firms are more likely to hire more workers
a. True b. False Indicate whether the statement is true or false
Discount rate policy is most often
a. lowered when market rates rise. b. used to actively control the money supply. c. the Fed's primary tool of monetary control. d. passively changed by the Fed to follow market rates.
Which of the following statements is true?
A. Corner solutions always satisfy the tangency condition. B. Interior solutions may or may not satisfy the tangency condition. C. Interior solutions always satisfy the tangency condition. D. Whenever the consumer purchases good X but not good Y, then MRSXY ? PX/PY at the chosen bundle.