Monopolies will tend to overproduce goods and charge a higher price than the competitive price.
Answer the following statement true (T) or false (F)
False
Monopolies will tend to underproduce goods and charge a higher price than the competitive price.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
A shift to a more expansionary monetary policy will generally _________ in the short run, but if the rapid monetary expansion persists, the long-run result will be ______.(fill in the blanks.)
a. expand output and employment; inflation b. increase the general level of prices; expand output and employment c. increase the rate of unemployment; reduce the rate of inflation d. reduce the rate of inflation; increase the rate of unemployment
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices are cut in half in the next year. How will this affect the time it takes to pay off your school loans, assuming that you put all your earnings into paying it off? Assume that your debt is $40,000.
A. It will cut the payoff time to 1/3 of the original time. B. It will cut the payoff time to 1/2 of the original time. C. It will cut the payoff time to 2/3 of the original time. D. It will double your payoff time.
The wage rate increases in a purely competitive industry. This change will result in a(n):
A. Decrease in average total cost for a firm in the industry B. Decrease in average variable cost for a firm in the industry C. Increase in the marginal cost curve for a firm in the industry D. Increase in short-run supply curve for a firm in the industry