A doctor sets up a private practice in small town where he faces no other competitors. In spite of his monopoly position why is he not guaranteed to make a profit?
What will be an ideal response?
Not even monopolists are guaranteed to make a profit. If the demand is so weak that it won't even cover the doctor's average total cost it might be possible that he may never make a profit.
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Productivity growth occurs when:
A) there are more inputs B) firms can produce more output per unit of input C) more output is produced D) employees work extra hours
What factors influence the stability of velocity? Why is velocity's stability a crucial issue for assessing the effectiveness of monetary policy?
According to A.P. Lerner, splitting income equally among individuals was most appropriate for maximizing combined satisfaction
Indicate whether the statement is true or false
If the CPI was 95 at the end of 2007 and 105 at the end of 2008, what was the inflation rate in 2008?
A) 105 percent B) 10.5 percent C) 9.5 percent D) 5 percent E) 10 percent