If a monopoly can advertise and as a result the demand curve will become more inelastic, the monopoly
A) should always engage in the advertising.
B) should engage in the advertising until the demand curve becomes more elastic.
C) will earn higher gross profit if it advertises.
D) None of the above.
C
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The most basic investigative tool of economics is the
A. concept of scarcity. B. mechanism of supply and demand. C. coordination and trade syndrome. D. inflation-unemployment trade-off. E. regulation of business.
A perfectly competitive firm's short-run shutdown point is the level of output at which
A) price equals average total cost. B) price equals average fixed cost. C) price equals the minimum average variable cost. D) price is above the minimum average total cost but below the minimum average fixed cost.
Over the past one hundred years,
a. wages rates have decreased, but nonlabor income has increased. b. wages have increased, but nonlabor income has decreased. c. both wages and nonlabor income have increased. d. both wages and nonlabor income have decreased.
Figure 10-1
If the price level in Figure 10-1 were 100,
a.
firms would have to lower their prices.
b.
inventories would be accumulating.
c.
shortages of goods would exist.
d.
aggregate quantity demanded would exceed aggregate quantity supplied.
e.
both c and d would occur.