For a nondiscriminating monopolist, describe the relationship between market price (P), average revenue (AR), and marginal revenue (MR)
a. P = AR = MR
b. P > AR = MR
c. P = AR > MR
d. P > AR > MR
e. P = AR < MR
C
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Market clearing prices in a market system act as
A) a signaling device. B) a direct measure of resource costs. C) a way for producers to advertise. D) a legally determined rationing device.
The intermediate zone in the middle of the short-run aggregate supply curve is upward sloping, so a rise in aggregate demand will cause higher output and price level, while a fall in aggregate demand will lead to ______ output and price level.
a. higher b. lower c. no change in d. surpluses in
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A. third worker. B. second worker. C. sixth worker. D. fourth worker.