Figure 7.1 shows a monopolist's demand curve. If the monopolist increases output from two to three units, what is its marginal revenue?
A. $3
B. $5
C. $12
D. $15
Answer: A
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Central banks intervene directly in foreign exchange markets by buying and selling ________
A) exports and imports B) foreign currencies C) U.S. government debt D) discount loans
If both the market for a firm's output and the market in which it hires its labor are perfectly competitive, the firm's labor demand curve will be perfectly elastic
a. True b. False
Monetarists believe that the aggregate supply curve is relatively steep in the short and long runs. This means they expect
a. inflation with no change in output. b. increases in output to bring much inflation. c. increases in output to bring little inflation. d. decreases in output to bring much inflation.
If a firm's average total costs fall as it produces a larger output,
a. average variable cost must also decline as output expands. b. marginal cost must also decline as output expands. c. average fixed cost must be less than average variable costs. d. marginal cost must be less than average total cost.