A monopoly sells 10 units of output at $10. If the MR of the 11th unit is $4.50, then the price of the 11th unit is

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

A) The straight-line boundary shows opportunity cost, whereas the concave boundary does not. B) The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs. C) A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy. D) The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs. E) The straight-line boundary does not show scarcity, whereas the concave boundary does.

Most economists agree that modest inflation is desirable over zero inflation because:

A. it allows a margin of error for those deciding on the money supply. B. it allows the Fed to more easily engage in expansionary monetary policy. C. it helps firms to more easily adjust real wages. D. All of these statements are true.