If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce at
A. the lowest point of marginal revenue curve.
B. the lowest point of marginal profit curve.
C. elasticity of demand equals 1.
D. All of the choices are correct.
Answer: D
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If, for a particular short-run production, we observe that marginal product is decreasing we can conclude that average product is decreasing as well
Indicate whether the statement is true or false
If the U.S. dollar were to cease to be the leading international reserve currency,
A) U.S. households and businesses would be unaffected. B) U.S. households and businesses would be subject to increased exchange rate risk. C) interest rates in the U.S. would be lower. D) the U.S. monetary base would contract.
Which of the following options would the Fed pursue if it wanted to increase the supply of money in the economy?
a. lowering reserve requirements b. raising the discount rate c. selling bonds d. increasing the interest rate paid on reserves
Which of the following would not change the demand for automobiles?
A) a change in the price of gasoline B) a change in the cost of steel C) a change in the price of motorcycles D) a change in tastes