The demand curve any monopolist uses in making output decisions is:
a. the same as the demand curve facing a perfectly competitive firm.
b. vertical, because there are no close substitutes for its product.
c. horizontal, because there are no close substitutes for its product.
d. the same as the market demand curve.
e. perfectly inelastic.
d
Economics
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Who bears the majority of a tax burden depends on whether the tax is placed on the buyers or the sellers
a. True b. False Indicate whether the statement is true or false
Economics
If the MPC is 0.5, and the government cuts spending by $400b, the overall effect on GDP will be:
A. a decrease of $400b. B. an increase of $400b. C. a decrease of $800b. D. an increase of $800b.
Economics