Why can a monopoly not sell all that it desires at any given price?
What will be an ideal response?
Although a monopoly may to a large extent select the price at which it sells its product, it cannot sell all it wants at that price because sales are limited by demand. If consumers do not want to buy as many units at that price as the monopoly desires, some units will not be sold. To sell more, the monopoly would have to lower its price or find some way to increase demand.
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Nations with slower growth rates can "catch up" to rapidly growing countries by
A) using budget deficits as a long-run policy tool. B) adopting the technologies of the wealthier nations. C) pressuring the central bank to increase the money supply and reduce interest rates. D) raising the minimum wage. E) exporting more than it imports.
The number and availability of discount brokers has grown rapidly since the mid-1970s. The efficient markets hypothesis predicts that people who use discount brokers
A) will likely earn lower returns than those who use full-service brokers. B) will likely earn about the same as those who use full-service brokers, but will net more after brokerage commissions. C) are going against evidence suggesting that full-service brokers can help outperform the market. D) are likely to outperform the market by a wide margin.
A successful and stable cartel can be established if there are
A) many firms producing a storable product. B) many firms producing a perishable product. C) a few firms producing a storable product. D) a few firms producing a perishable product.
When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less than those paid to male workers
a. True b. False Indicate whether the statement is true or false