Keynesians, monetarists, and classical economists all agree that the transactions demand for money is the demand for money by households for

If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to

A) 16. B) 21. C) 25. D) 58.

In constructing models, economists

a. leave out equations, since equations and models tend to contradict one another. b. ignore the long run, since models are useful only for short-run analysis. c. sometimes make assumptions that are contrary to features of the real world. d. try to include every feature of the economy.