A monopoly sets its price such that demand for the good produced is ______
A. unit elastic
B. inelastic
C. elastic
D. either elastic or inelastic, but never unit elastic
C To maximize profit, marginal cost must equal marginal reve-nue. Marginal cost is positive, so to maximize profit marginal revenue must also be positive. Only when the demand is elas-tic is marginal revenue positive.
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Suppose Country A had net taxes of $30 million and government expenditures of $35 million. In addition, household saving in Country A totaled $5 million while consumption was $80 million
The government of Country A is running a budget ________ and national saving is ________ million. A) surplus; $5 B) deficit; -$5 C) deficit; $0 D) surplus; $25
Suppose prices are quoted in dollars and transactions are conducted in pesos. The peso serves as a
A) medium of exchange. B) store of value. C) unit of account. D) all of the above.