Because monopolists charge a price in excess of marginal cost, it must be the case that monopolists:
A. earn a negative economic profit.
B. produce more than the socially optimal level of output.
C. earn a positive economic profit.
D. produce less than the socially optimal level of output.
Answer: D
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Which of the following transactions will be included in the calculation of GDP using the expenditure method?
A) The sale of a used car by a consumer B) The payment made to a construction worker C) The purchase of a treasury bond by an investor D) The purchase of a private jet by the CEO of a company
What are the flows in the market economy that go from firms to households and the flows from households to firms?
What will be an ideal response?
Show the effects of a permanent increase in the money supply
What will be an ideal response?
When you deposit funds in a bank and then the bank lends these funds to a borrower, the bank is engaged in
A) fiduciary investment. B) fraudulent behavior. C) universal banking. D) financial intermediation.