When marginal revenue is zero for a monopolist facing a downward-sloping straight-line demand curve, the price elasticity of demand is:
a. equal to 1.
b. equal to 0.
c. greater than 1.
d. less than 2.
a
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Which of the following changes does NOT shift the long-run aggregate supply curve?
A) a decrease in the labor force B) a fall in the price level C) a rise in number of college graduates in the labor force D) a tax hike that reduces the capital stock
Real domestic interest rates would increase in a large open economy if
A) there were a temporary negative domestic supply shock. B) the government imposed capital controls and the capital and financial account had been in deficit. C) foreigners were more willing to save. D) there were a temporary negative supply shock abroad in a small open economy.
Hughes and Cain (2011) suggest that an event or series of events occurring in 1763 doomed British policy. What happened?
(a) A series of oppressive taxes (b) A tightening and more rigorous enforcement of the Navigation Acts (c) A proclamation which limited trans-Appalachian settlement to lands once granted to colonists by crown approval (d) An act that gave the Quebec province all the land west of the Ohio River
If firms are producing at a profit-maximizing level of output where the price is equal to the average total cost:
A. accounting profits may be negative. B. accounting profits must be zero. C. economic profits may be positive. D. economic profits must be zero.