Answer the following statements true (T) or false (F)
1) Refer to the diagram for a nondiscriminating monopolist. At output M total cost will be 0CHM.
2) Refer to the diagram for a nondiscriminating monopolist. From society's point of view it would be desirable to have the monopolist produce a larger output than M.
3) Refer to the diagram for a nondiscriminating monopolist. If the government regulates the monopolist so that it charges the "fair return" price, the monopolist will produce output N.
4) Refer to the diagram for a nondiscriminating monopolist. If the government regulates the monopolist so that it charges the socially optimal price, the monopolist w
1) F
2) T
3) F
4) T
5) F
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If the nominal interest rate is 8.25% and inflation rate is 3%, the real interest rate is ________
A) 5.25% B) 2.75% C) 1.25% D) 11.25%
If the price of a good increases, all else the same, then the consumer's total utility will
A) increase. B) decrease. C) remain the same as consumption shifts to cheaper goods. D) decrease if there are no substitutes for the good and remain the same if there are substitutes for the good.