Which of the following is true for a monopolist?
A) Being the only seller in the market, the monopolist faces a perfectly inelastic demand curve.
B) Being the only seller in the market, the monopolist faces a perfectly elastic demand curve.
C) Being the only seller in the market, the monopolist faces the market demand curve.
D) Being the only seller in the market, the monopolist faces a downward-sloping demand curve that lies below the marginal revenue curve.
Answer: C
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Jordan is planning ahead for retirement and must decide how much to spend and how much to save while he's working in order to have money to spend when he retires. When the income effect dominates the substitution effect, an increase in the interest rate on savings will cause him to
a. decrease his savings rate. b. increase his savings rate. c. continue saving at the current rate. d. Any of the above could be correct.
Employers will hire more units of a resource if the:
A. price of the resource increases. B. productivity of the resource increases. C. price of the good being produced declines. D. price of a complementary resource rises.