Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium?
A) Marginal revenue will rise and marginal cost will fall.
B) Marginal cost and marginal revenue will both rise.
C) Marginal revenue will fall and marginal cost will rise.
D) Marginal cost and marginal revenue will both fall.
C
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A change in the interest rate will generally affect the
A) level of investment. B) level of consumption. C) the amount of money people want to hold. D) All of these.
The White House's deficit commission has proposed several ways for the government to reduce the federal budget deficit, including raising the retirement age for Social Security
Other things equal, raising the retirement age for Social Security would tend to ________ the supply of labor and ________ the equilibrium wage rate. A) increase; raise B) increase; lower C) decrease; raise D) decrease; lower