Suppose a monopolist faces the following demand curve.
The monopolist maximizes its profits by:
A. producing 35 units, since this is where total revenue is maximized.
B. producing the level of output at which marginal revenue equals marginal cost.
C. producing the level of output at which marginal revenue minus marginal cost is greatest.
D. charging $70 for each unit.
Answer: B
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If ________, net exports are negative
A) imports exceed transfer payments B) imports exceed exports C) exports exceed transfer payments D) exports exceed imports
The only circumstance under which a factor will earn no rent is when the factor's supply curve is
a. vertical. b. upward sloping. c. perfectly horizontal. d. kinked.
A vertical long-run aggregate-supply curve represents
a) both the classical dichotomy and monetary neutrality. b) the classical dichotomy but not monetary neutrality. c) neither the classical dichotomy nor monetary neutrality. d) monetary neutrality but not the classical dichotomy.
If a country devotes its resources to acquiring more physical capital it will:
A. not have less overall GDP in the future. B. have more current consumption. C. not face the investment trade-off. D. have more GDP per capita in the future.