Consider the monopoly depicted in Figure 8.14. Relative to the cost of producing the quantity the monopolist would choose under an average-cost pricing policy, the cost of producing Q4 units is:

In the long run, a single-price monopolist will

A) make zero economic profit. B) be able to continue to make an economic profit as long as there is a barrier to entry. C) end up being regulated by the government because it is making short-run economic profits. D) Both answers A and C are correct.

Real wages usually lag behind the increases in labor productivity.

Answer the following statement true (T) or false (F)