A monopolist will be able to earn positive pure economic profits regardless of the price elasticity of demand
a. True
b. False
Indicate whether the statement is true or false
False
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The most significant expansion of Medicaid since its inception occurred in 1997 and is referred to as
a. SCHIP. b. SHIP. c. TANF. d. AFDC.
The Fed has decreased the money supply. The formula for calculating the resulting change in demand deposits is
a. (1/RRR) minus the change in reserves b. (1/RRR) multiplied by the change in reserves c. the change in reserves divided by [1 - (1/RRR)] d. RRR minus the change in reserves e. [1 - (1/RRR)] multiplied by the change in reserves
Hal is the CEO of a firm with a monopoly on a gadget used by kayakers. Hal sells about 200,000 of his products annually, but he would like to make twice that amount available at the same price, hoping to double his income. If we look at the demand curve for Hal’s firm, what will happen as he produces twice as many products?
a. The curve will become vertical. b. The curve will slope upward. c. The curve will slope downward. d. The curve will remain horizontal.
Refer to the above graphs. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. Which graph best illustrates the price elasticity of demand for this good?
A. Graph A B. Graph B C. Graph C D. Graph D