Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?
a. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist.
b. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does.
c. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost.
d. A monopolist can earn economic profit in the short run; a competitive price taker cannot.
a
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Refer to Figure 9-2. Without the tariff in place, the United States produces
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
The Economic Recovery Act of 2008 included a temporary increase in the federal deposit insurance ceiling from $100,000 to $250,000. The likely objective was to ________
A) boost bank profitability B) increase the money supply C) discourage withdrawals from banks D) bail out the Federal Deposit Insurance Corporation (FDIC)