The market-clearing price is:
a. the price at which the market is in equilibrium.
b. the price at which mutually beneficial trade take place.
c. the price at which sellers earn the maximum profit.
d. the price at which consumer surplus is zero.
A
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According to the Keynesian model, a decline in the expected price level
a. will increase the inflation rate a central bank must generate to achieve a target level of unemployment. b. will decrease the inflation rate a central bank must generate to achieve a target level of unemployment. c. will not affect the inflation rate a central bank must generate to achieve a target level of unemployment. d. will not impact the effectiveness of monetary policy.
When a monopolist sells two units of output its total revenues are $100. When the monopolist sells three units of output its total revenues are $120. When the monopolist sells three units of output, the price per unit is:
A. $6.67. B. $20. C. $33.33. D. $40.
In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally:
A. Increase price and decrease production B. Not change its level of output or price C. Decrease the price it charges for its product D. Increase its output and practice price discrimination
If the price of bread were zero, a budget line between bread (on the vertical axis) and cheese (on the horizontal axis) would
a. not exist b. be vertical c. coincide with the vertical axis d. be horizontal e. coincide with the horizontal axis