Which of the following is true for a monopolist that does not price discriminate?
a. P > MR because some revenue is lost from having to lower the price on all units sold
b. P < MR because the monopolist must lower price to sell more output
c. P = MR only at the profit-maximizing level of output
d. P = MR because there are no close substitutes for the good
e. P = MR because the firm faces a perfectly elastic demand curve
A
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One of the primary reasons that Mexico has experienced relatively low rates of economic growth is that for Mexican entrepreneurs,
A) the government has a history of nationalizing all successful domestically-owned industries. B) problems in the banking system have made it difficult to obtain the funding needed to finance expansion. C) there is a shortage of low-skilled labor to fill manufacturing jobs. D) incentives from its neighboring Central American countries has attracted most of the foreign investment in the region.
When the price level rises as a result of a decrease in aggregate supply, it is called cost-push inflation
a. True b. False Indicate whether the statement is true or false
An individual firm hiring labor in a competitive labor market faces a(n)
a. horizontal supply curve of labor b. backward-bending supply curve of labor c. downward-sloping supply curve of labor d. upward-sloping supply curve of labor e. vertical supply curve of labor
Imitation as a strategy for acquiring new technology is based on the difference in effort between
a. creating it and thinking of it. b. creating it and looking it up. c. looking it up and writing it down. d. discovering it and innovating it.