Explain why a monopolist does not have a supply curve
Any firm, including a monopolist, has cost curves. For competitive firms marginal cost dictates supply, since the firm produces where P = MC. But the marginal cost curve does not dictate monopoly supply. The monopolist produces at MR = MC, where MR depends on the position of demand. Hence, two monopolists with similar costs could charge completely different prices, depending on the demand for their products. A monopolist chooses a profit-maximizing level of output, but it does not really have a supply curve, which indicates a collection of price-quantity combinations that it is willing to supply.
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Which of the following is NOT true about dead capital?
A) Companies will be less likely to want to invest when a country has a lot of dead capital. B) Dead capital can inhibit economic growth. C) Dead capital will lead to higher investment returns. D) Dead capital can lead to a situation where resources are not efficiently employed.
The portfolio theories of money demand state that when income (and therefore, wealth) is higher, the demand for the money asset will ________ and the demand for real money balances will be ________
A) rise; higher B) rise; lower C) fall; higher D) fall; lower
During this century, the growth rate of real GDP in the United States has averaged approximately
What will be an ideal response?
Figure 4.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from:
A. point a to point b. B. point c to point b. C. S2 to S1. D. S0 to S1.