Because monopolists are protected by high barriers to entry, they:
A. may be able to earn long-run economic profits.
B. will not minimize the per-unit cost of producing their output.
C. will price their product at the highest possible price.
D. seek economic profit; however, they are not able to earn it in the long run.
Answer: A
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The MRS of the indifference curves in the above figure
A) equals 1/2. B) equals 2. C) changes when moving along any one of the curves. D) is constant along a particular indifference curve, but changes from one indifference curve to the next.
The consumption schedule shows:
A. that the MPC increases in proportion to GDP. B. that households consume more when interest rates are low. C. that consumption depends primarily on the level of business investment. D. the amounts households intend to consume at various possible levels of aggregate income.