A monopolist maximizes profit by producing the output at which marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
True
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An inferior good is a good for which the quantity demanded increases as the price decreases, holding everything else constant
Indicate whether the statement is true or false
Prior to 2008, the bank's cost of holding reserves equaled
A) the interest paid on deposits times the amount of reserves. B) the interest paid on deposits times the amount of deposits. C) the interest earned on loans times the amount of loans. D) the interest earned on loans times the amount on reserves.
The cross-price elasticity of demand between rifles and bullets is likely to be
a. negative because the goods are complements b. positive because the goods are complements c. negative because the goods are substitutes d. positive because the goods are substitutes e. 0 because the goods are not substitutes
"Countries usually experience substantial net economic gains from joining trade blocs." Do you agree or disagree with this statement? Why? In your answer, include discussion of the roles of trade creation and trade diversion. Also include discussion of other gains or losses that can arise in a country that chooses to join a trade bloc.
What will be an ideal response?