Under monopoly we have "unexploited gains from trade" because
A. if the firm were competitive it would have decreased output in the long run.
B. the FCC is always trying to regulate it.
C. if the firm were competitive it would have not changed output in the long run.
D. if the firm were competitive it would have increased output in the long run.
Answer: D
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In 2000, Congress eliminated the earnings test for those ages 62 and up who still work
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1) The short-run aggregate supply curve is vertical and the long-run aggregate supply curve is horizontal. 2) The short-run aggregate supply curve shifts to the left when nominal wages rise in response to price level increases. 3) In the extended AD-AS model, the long-run aggregate supply curve is vertical. 4) Demand-pull inflation and cost-push inflation are identical concepts because both involve lower unemployment rates and rising prices. 5) The Phillips Curve suggests an inverse relationship between increases in the price level and the level of employment.