If marginal costs increase, a monopolist will:
a. decrease price and increase output.
b. decrease both price and output.
c. increase price and decrease output.
d. increase both price and output.
e. keep both price and output at the same level.
c
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Which one of the following will shift the consumption function downward?
a. An increase in disposable income. b. A decrease in disposable income. c. Legislation making credit harder to obtain. d. Lower tax rates. e. A technological breakthrough.
In assessing the difference between monopoly performance and that of perfect competition, the best approach is to
a. measure the output of the monopolist and the output of the perfectly competitive firm. b. measure the output of the monopolist and the output of the perfectly competitive industry. c. measure the output purchased by consumers from the monopolist and from the perfectly competitive firm. d. calculate the marginal cost of the monopolist and of the perfectly competitive firm.
A key feature of the new growth theory is the assumption of
A) diminishing returns to labor. B) diminishing returns to knowledge. C) no diminishing returns to knowledge. D) no diminishing returns to labor.
All human wants cannot be satisfied because of the problem of scarcity
a. True b. False Indicate whether the statement is true or false