Since a monopolist faces a downward sloping demand curve,
a. the monopolist is able to sell all that it wants at whatever price the monopolist chooses.
b. it is necessary for the monopolist to lower the price to sell additional units of the good.
c. the monopolist sells only a fraction of the total sales of the good in the market
d. the monopolist must always make an economic profit.
b
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Below are pairs of GDP growth rates and unemployment rates. Economists would not be shocked to see most of these pairs in the U.S. Which pair of GDP growth rates and unemployment rates is not realistic?
a) 10 percent; 5 percent b) -1 percent; 8 percent c) 3 percent; 6 percent d) -2 percent; 2 percent
In the short run, which of the following would indicate that a perfectly competitive firm is producing an output for which it is receiving a normal profit?
A) P > AC B) AVC < P < AC C) P = AC D) P = AVC