A monopolist produces where P = MC = MR
a. True
b. False
Indicate whether the statement is true or false
False
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Cross-price elasticity refers to:
A. how much the quantity demanded of one good changes in response to a change in the price of a different good. B. how much the quantity demanded of one good changes in response to a change in its price. C. the magnitude of the shift in demand for a good in response to a change in its price. D. how much the quantity demanded of a good changes in response to a change in consumers' incomes.
In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory accumulation. b. unplanned inventory depletion. c. an increase in GDP. d. an increase in employment.
If there is a large increase in the price of oil and the Fed wishes to maintain stable output, which of the following should it do?
a. Do nothing, because the self-correcting mechanism will adjust the economy b. Sell bonds in the open market c. Wait, because output seldom changes when there is an increase in the price of oil d. Encourage firms to not adjust the wages they pay e. Buy bonds in the open market
Refer to the accompanying table below. The average benefit of 2 units of activity is:Units of ActivityTotal CostTotal Benefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. $40 B. $60 C. $20 D. $80