When a monopoly cuts its price to increase its sales, it experiences a loss in revenue due to the ________
Fill in the blank(s) with the appropriate word(s).
Answer: price effect.
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A firm is producing 2,500 units at its optimal output, with average variable cost per unit of $4 and average fixed cost per unit of $2.50. If sells its output at $8 per unit, total profit is
A. $10,000. B. $3,750. C. $1,500. D. $20,000
If a $30 increase in U.S. exports to France causes a $150 increase in U.S. national income, the value of the marginal propensity to consume in France is
a. 0.80 b. 0.20 c. 2 d. not discernible given the information provided e. 120
The most common form of "forced savings" in the U.S. is:
A. Medicare. B. unemployment insurance. C. Social Security. D. FICA.
In Exhibit 1, at what quantity and price have all the mutually beneficial opportunities of trade been reached between suppliers and demanders?
a. quantity of four and price of $4
b. quantity of three and price of $5
c. quantity of two and price of $6
d. quantity of one and price of $4