The owner of a patented invention
A) may or may not have a legal monopoly.
B) is guaranteed a profit since her idea cannot be copied.
C) will always have demand high enough and costs low enough to ensure a profit.
D) will only earn a profit if average total cost is less than price.
Answer: D
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If the MPC in an economy is 0.8, government could close a recessionary expenditure gap of $100 billion by cutting taxes by
A. $100 billion. B. $125 billion. C. $80 billion. D. $200 billion.
Refer to the scenario above. Plutoland's financial account reported a balance of ________ for the year
A) -$4 billion B) $14 billion C) -$10 billion D) $10 billion
Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent
If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent. A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2
A straight-line demand curve with negative slope intersects the horizontal axis at 200 tons per week. The point on the demand curve at which the price elasticity of demand is 1 corresponds to a quantity demanded
A) of 0 tons. B) of 100 tons. C) of 200 tons. D) that would be negative if a negative quantity demanded were possible.