Consider a price ceiling imposed on a monopoly. For what quantities will the monopoly's new marginal revenue curve be horizontal at the ceiling price?
a. For quantities where the demand curve lies above the ceiling price.
b. For quantities where demand is elastic.
c. For quantities where marginal cost is rising.
d. Marginal revenue will be constant and equal to the ceiling price for all quantities.
a. For quantities where the demand curve lies above the ceiling price.
You might also like to view...
Andy spends $30 a week on movies and magazines. The price of a movie is $8, the price of a magazine is $2, and Andy sees 3 movies a week and buys 3 magazines
The price of a magazine increases to $4 and Andy's brother gives him $6 a week so that he can still see 3 movies a week and buy 3 magazines. In this situation, Andy will see ________ movies a week and buy ________ magazines. A) fewer than 3; fewer than 3 B) 3; 3 C) fewer than 3; more than 3 D) more than 3; fewer than 3
Assume it takes the Fed 4 months to understand that a demand shock has occurred in the economy, and another 1 month to adjust policy to the shock
The initial 4 month time period refers to the ________, and the following one month time period refers to the ________. A) impact lag; implementation lag B) recognition lag; implementation lag C) implementation lag; policy lag D) policy lag; impact lag
The capital account balance is equal to the
A. Current account balance plus U.S. purchases of foreign assets. B. Current account balance plus foreign purchases of U.S. assets. C. U.S. purchases of foreign assets minus foreign purchases of U.S. assets. D. Foreign purchases of U.S. assets minus U.S. purchases of foreign assets.
An expected increase in the future price of automobiles will lead to
A. a movement down the demand schedule for automobiles. B. a reduction in the demand for gasoline today. C. no predictable impact on today's demand for automobiles. D. an outward shift in demand for automobiles today.