A profit-maximizing monopoly will never operate in the portion of the demand curve with MR equal to
A) 3.
B) 2.
C) 1.
D) -1.
D
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The above figure depicts the market for video games. If the government imposed a $3 per game tax on sellers, what would be tax revenue?
A) less than $18 B) $18 C) more than $18 D) More information is needed to determine if the tax revenue is more than, less than, or equal to $18.
Answer the following statements true (T) or false (F)
1. Interest represents a cost to the borrower, but an income to the lender. 2. The demand curve for loanable funds illustrates the behavior of lenders or savers. 3. The quantity of loanable funds supplied is inversely related to the interest rate. 4. A decrease in the supply of loanable funds would tend to lower the interest rate. 5. If people became thriftier and saved more, the loanable funds theory predicts that the equilibrium interest rate would decrease.