A monopolist sets its price
A. below the demand curve.
B. without constraints since there is no competition.
C. on the demand curve, at the rate of output where marginal revenue equals marginal cost.
D. at the minimum of the long-run average total cost curve.
Answer: C. on the demand curve, at the rate of output where marginal revenue equals marginal cost.
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As prices of an input changes, the isocost line will ________ to reflect more or less of the total amount spent in production
Fill in the blank(s) with the appropriate word(s).
The quantity theory of money is the idea that in the long run
A) the quantity of money is determined by banks. B) the quantity of money serves as a good indicator of how well money functions as a store of value. C) the quantity of money determines real GDP. D) an increase in the growth rate of the quantity of money leads to an equal increase in the inflation rate.