Which of the following is not true?
a. The monopolist, like the perfect competitor, will maximize profits at that output where MR = MC
b. The monopolist, like the perfect competitor, will maximize profits at that output where P = MC.
c. If a monopoly is earning economic profits, they will not be eliminated by entry into the industry.
d. A monopolist produces an output where the value to society from the last unit produced is greater than its marginal cost.
b
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During 2013, exports increase from $1.0 trillion to $1.5 trillion. If the slope of the aggregate planned expenditure (AE) curve is 0.75, real GDP increases by
A) $8.0 trillion. B) $2.0 trillion. C) $6.0 trillion. D) $1.0 trillion. E) $4.0 trillion.
Between 1947 and 2014, U.S. real GDP
A) remained relatively unchanged. B) doubled. C) grew eightfold. D) decreased even though nominal GDP increased.
Briefly answer the following questions
(a) What is a foreign currency option? Is there any difference between a European and American option? (b) Why might you prefer an option over a futures or forward contract? (c) When can a gain be made by the holder of a call option? A put option?
Productive efficiency refers to:
A. the use of the least-cost method of production.
B. the production of the product mix most wanted by society.
C. the full employment of all available resources.
D. production at some point inside of the production possibilities curve.