Other things being equal, the behavior of a monopolist differs from that of a competitive industry in that
A) the monopolist does not attempt to maximize economic profit.
B) the monopolist hires more labor.
C) the monopolist restricts output and hires less labor.
D) the monopolist must consider fixed costs in deciding the optimal level of output to produce in the short run.
C
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The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are unwilling to offer discounts b. the Vice President want to negotiate more aggressively c. the sales staff want to negotiate too aggressively d. the Vice President is more willing to offer discounts to make the sale
Economic fluctuations are defined as
a. alternating periods of significant GDP growth and decline. b. events only encountered in developing countries. c. periods of stable economic growth. d. alternating periods of unemployment falling above and below zero.
A common argument in favor of restricting trade
a. concerns the strategy of bargaining. b. is that efforts should be made to get new industries started. c. emphasizes the belief that all countries should play by the same rules. d. All of the above are correct.
If there is an increase in market demand in a perfectly competitive market, then in the short run prices will
a. rise. b. remain unchanged at the minimum of average total cost. c. fall. d. remain unchanged at the minimum of marginal cost.