Which of the following is not true for a profit maximizing single-price monopolist in the long run?
A. Demand is inelastic.
B. Marginal revenue equals marginal cost.
C. Price is greater than marginal revenue.
D. It will make profit or break even.
Answer: A
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The Fed relies primarily on the discount rate to control the money supply
a. True b. False Indicate whether the statement is true or false
Increased opportunities for trade increase production by
A. Protecting countries from competition. B. Shifting the production possibilities curve outward. C. Encouraging countries to be self-sufficient. D. Improving efficiency through specialization.
Refer to the above diagram for the milk market. In this market, the equilibrium price is ________ and equilibrium quantity is ________.
$1.50 per gallon; 28 million gallons $1.50 per gallon; 30 million gallons $1.00 per gallon; 35 million gallons $28 per gallon; 150 million gallons
A payroll tax is imposed on two types of labor: welders and machinists. In the short run, the elasticity of labor supply of welders is much more elastic than the elasticity of labor supply of machinists. Which of the following is true?
A. In the short run, machinists will bear a larger share of the payroll tax than welders. B. In the short run, welders will bear a larger share of the payroll tax than machinists. C. In the short run, welders and machinists will bear the same share of the payroll tax, but in the long run, machinists will bear a larger share of the payroll tax than welders. D. There is not enough information to determine the relative shares of the payroll tax for welders and machinists in either the short run or the long run.