Consider the market for Hewlett-Packard printers, depicted in the figure to the right, where the supply of HP printers has increased from S1 to S2. What would cause the supply curve for HP printers to shift to the right?
A. a decrease in the price of a substitute in production
B. a decrease in the price of an input
C. a higher expected future price for HP printers
D. both A and B
E. all of the above
Ans: D. both A and B
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In July in San Francisco, for example, only ____% of Southwest flights arrived on time, compared with 75.7% for United Airlines, the largest carrier there.
Fill in the blank(s) with the appropriate word(s).
When considering marginal revenue for the monopolist, which of the following is FALSE?
A) To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price. B) An essential point for the monopolist, marginal revenue is always less than price. C) Marginal revenue is always less than price because price must be reduced on all units to sell more. D) The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits.