If the MPC is 0.8, then the multiplier is 0.2.
Answer the following statement true (T) or false (F)
False
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The producer surplus to a monopolist must be
A) less than zero or the firm is in violation of anti-trust statutes. B) at least as great as the producer surplus in a competitive market. C) positive, otherwise why would the monopoly produce? D) the same as for a competitive market.
The purpose of randomized pricing is to reduce:
A. both customer and competitor information about price. B. competitor price information only. C. the firm's pricing inflexibility. D. consumer price information only.
What type of economics would most typically deal with aggregates?
A) macroeconomics B) microeconomics C) normative economics D) financial economics
When there is overproduction in a market,
A. there is a deadweight loss. B. market price is too low. C. the total of consumer and producer surplus is maximized. D. there is excess quantity demanded.