The monopolist's outcome in the long run differs from that of the perfectly competitive firm in that it:
A. has zero profits in the long run.
B. charges a price above average total costs.
C. charges a price where marginal costs equal average revenue.
D. charges a price equal to MC.
B. charges a price above average total costs.
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The new monetary policy tool that the Fed began using in 2008 is
A) changing the interest rate paid on reserves. B) imposing a surcharge on credit cards. C) putting a tax on all financial transactions. D) borrowing from China.
A higher wage raises a worker's income, increasing the demand for all ________ goods, including leisure, so the quantity of labor supplied to market work decreases
a. inferior b. substitute c. normal d. complementary
The demand for good X has been estimated to be ln Qxd = 100 ? 2.5 ln PX + 4 ln PY + ln M. The income elasticity of good X is:
A. 1.0. B. 2.0. C. ?2.5. D. 4.0.
In the United States, trade adjustment assistance
A. is often criticized on the ground that it provides benefits to millions of workers each year who have not actually been affected by increased imports. B. provides incentives for workers to search for new jobs outside an import-competing industry before they lose their jobs in this industry. C. provides subsidies to firms who produce exportable commodities. D. provides workers who have been displaced from import-competing firms with additional months of unemployment compensation.