The intent of indexing is to
a. raise tax revenue automatically during inflation.
b. shift the short-run Phillips curve to the right.
c. take most of the sting out of inflation.
d. reduce inflation gradually.
c
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Which of the following statements applies to a single-price monopolist?
A) In order to maximize profits, the monopolist will produce an amount of output that lies in the elastic range of its demand. B) In order to maximize profits, the monopolist will produce an amount of output that lies in the inelastic range of its demand. C) In order to maximize profits, the monopolist will produce where its demand is unit elastic. D) In order to maximize profits, the monopolist will produce an amount of output in the inelastic range of its supply.
Monopolistic competition is characterized by
A) relative ease of entry into the market. B) a standard, undifferentiated product. C) persistent long-run economic profits. D) production at minimum average cost in the long run.