A profit maximizing monopoly's price is
A) not consistently related to price that would prevail if the market was perfectly competitive.
B) greater than the price that would prevail if the industry was perfectly competitive.
C) less than the price that would prevail if the industry was perfectly competitive.
D) the same as the price that would prevail if the industry was perfectly competitive.
B
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At the point where consumption equals disposable income, the average propensity to consume equals 1
a. True b. False Indicate whether the statement is true or false
Which of the following is the correct way to describe equilibrium in a market? a. At equilibrium, demand equals supply
b. At equilibrium, quantity demanded equals quantity supplied. c. At equilibrium, market forces no longer apply. d. At equilibrium, the "fairest" price for output is achieved.