Suppose a profit-maximizing monopolist faces a constant marginal cost of $20, produces an output level of 100 units, and charges a price of $50 . The socially efficient level of output is 200 units. Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines. The monopoly deadweight loss equals $1,500
a. True
b. False
Indicate whether the statement is true or false
True
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The revenue that a government raises by printing money is called
A) seignorage. B) monetary revenue. C) currency credit. D) currency inflation.
The marginal revenue product is
A) the change in total output resulting from a one-unit change in variable output. B) the change in marginal output resulting from a one-unit change in variable input. C) the change in total revenue resulting from a one-unit change in variable input. D) the change in marginal revenue resulting from a one-unit change in variable input.
Use the above figure. The total cost faced by this monopolistically competitive firm is
A. $2,080. B. $1,900. C. $3,150. D. $1,600.
Planned expenditures equal real disposable income
A) at every point on the saving function. B) at every point on the consumption function. C) at every point on the 45-degree line. D) when saving equals zero.