Which of the following is not true when a monopoly market is in equilibrium?
A) Consumer well being would be improved if less resources were allocated to the industry in which the monopoly operates.
B) Price > MC.
C) Price > MR.
D) Price = Average Revenue.
A
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Learning by doing will result in
A) an upward sloping long-run average cost curve. B) a larger long-run marginal cost than long-run average cost. C) a rotation in the isocost curves. D) lower long-run costs than short-run costs.
Employing a fixed-weight index like the Consumer Price Index to adjust a person's salary in response to inflation will overcompensate this person because doing so will allow this person to
A) buy the same bundle of goods as he did before the inflation. B) achieve a higher level of utility than he did before the inflation. C) achieve the same level of utility as before the inflation. D) buy more of all goods.