Will a monopolist produce at a quantity that is higher than the long-run competitive equilibrium output level?
A. No, profit maximization for a monopoly always occur at a lower output level than in a competitive market.
B. Yes, the monopoly always produces at an output level larger than in a competitive market.
C. Yes, but only if it is a monopoly because it holds a patent.
D. There is no theory in microeconomics that states that a monopolist produces larger or smaller output than in a perfectly competitive firm in the long-run.
Answer: A
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What will be an ideal response?
Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because
a. buyers tend to be much less sensitive to a change in price when given more time to react. b. buyers tend to be much more sensitive to a change in price when given more time to react. c. buyers will have substantially more real income over a ten-year period. d. the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.
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A. export wheat and import steel. B. import both the goods from the Rest of the World. C. export both the goods to the Rest of the World. D. export steel and import wheat.
Checkable deposits are included in:
A. M1 but not in M2 B. M2 but not in M1 C. both M1 and M2 D. neither M1 nor M2