The marginal revenue curve for a monopolist:
A. is a straight, upsloping curve.
B. rises at first, reaches a maximum, and then declines.
C. becomes negative when output increases beyond some particular level.
D. is a straight line, parallel to the horizontal axis.
Answer: C
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Entry barriers can lead to long-run economic profits
a. True b. False Indicate whether the statement is true or false
By the late 1970s,
A. Russia began reforms which eventually transformed it to a more market-oriented economy. B. China began reforms which eventually transformed it to a more market-oriented economy. C. Russia and China were both quickly becoming market-oriented economies. D. None of the choices are true.
In a market economy:
A. collective decision-making is more important than individual decision-making. B. goods and services are distributed as if by an "invisible hand" to those who can not afford them. C. profit provides an incentive to be productive. D. the distribution of wealth is equitably distributed.
When the Fed uses contractionary policy,
A) it causes inflation. B) the price level rises higher than it would if the Fed did not pursue policy. C) it does not change the price level. D) the price level rises less than it would if the Fed did not pursue policy.