A monopoly always operates in the inelastic portion of its demand curve
Indicate whether the statement is true or false
False. A monopoly never operates in the inelastic portion of its demand curve. Marginal revenue is negative in this region.
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Which has greater elasticity: a supply curve that goes through the origin with slope of 1 or a supply curve that goes through the origin with slope of 5?
A. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity. B. They both have the same elasticity. Any supply curve with a positive slope has the same elasticity. C. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1. D. The supply curve with slope of 5. Slope and elasticity are directly related so the higher the slope, the higher the elasticity.
When the federal funds rate equals the interest rate paid on excess reserves
A) the supply curve of reserves is vertical. B) the supply curve of reserves is horizontal. C) the demand curve for reserves is vertical. D) the demand curve for reserves is horizontal.