The market structure in which each firm has a monopoly over the product it makes, but many other firms make similar products that compete for the same customers is called

The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers

A) had adaptive expectations. B) had rational expectations and that they trusted Fed announcements. C) preferred high unemployment to high inflation. D) Both A and B are correct answers.

Market price is $50. The firm's marginal cost curve is given by MC = 10 + 2Q

a. Find the profit-maximizing output for the firm. b. At this output, is the firm making a profit? Explain your answer.