For a monopoly, MC = MR < P so that MC < MU
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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Price is important in a market economy because it
a. eliminates imbalances between supply and demand. b. serves as the rationing mechanism for the limited supplies of goods and services. c. coordinates the choices of consumers and producers and brings them into harmony. d. is all of the above.
Economics
Exhibit 11-12 A monopsonist
In Exhibit 11-12, we know this exhibit shows a monopsonistic labor market because:
A. the MRP curve slopes down. B. the market supply of labor curve is horizontal. C. the MFC curve lies above the supply of labor curve. D. the MRP curve lies below the supply of labor curve.
Economics