Exhibit 8-7 Monopolist
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According to the information provided in Exhibit 8-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $10, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit-maximizing price.
B. Increase price and increase output.
C. Decrease price and increase output.
D. Increase output and hold price constant.
Answer: C
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If the nominal interest rate in an economy is 9% and the expected inflation rate is 6%, then the expected real interest rate in the economy is:
A) 15%. B) 3%. C) 6%. D) 9%.
According to the World Bank, in 2006, China's GDP was approximately $2.7 trillion (or $2,700 billion). That same year, India's GDP was approximately $906.3 billion
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