In a monopoly, consumer surplus is
A) larger than under perfect competition.
B) is equal to that under perfect competition.
C) smaller than under perfect competition.
D) None of these choices is true.
C
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If a producer can sell each and every unit he can possibly produce for $10 each, then
A) he is a price taker. B) the demand for his product is infinitely elastic. C) his marginal revenue curve is a horizontal line at $10. D) all of the above are true.
Under sticky prices
A) a fall in the money supply raises the interest rate to preserve money market equilibrium. B) a fall in the money supply reduces the interest rate to preserve money market equilibrium. C) a fall in the money supply keeps the interest rate intact to preserve money market equilibrium. D) a fall in the money supply does not affect the interest rate in the short run, only in the long run. E) a fall in the money supply raises the interest rate to preserve money market equilibrium in the long run.