Which of the following is true of marginal revenue for a monopolist that charges a single price?
a. P = MR because there are no close substitutes for the monopolist's product.
b. P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
c. P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
d. AR = MR because there are no close substitutes for the monopolist's product.
e. P = MR only at the profit-maximizing quantity.
B
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In the long run
a. all inputs are fixed. b. all inputs are variable. c. some inputs are fixed. d. production levels never change.
Which of the diagrams best portrays the effects of a substantial reduction in government spending?
Use the following diagrams for the U.S. economy to answer the following question.
A. A.
B. B.
C. C.
D. D.