It is true that the equilibrium quantity will always go up if supply:
A) and demand both increase.
B) increases and demand decreases.
C) and demand both decrease.
D) decreases and demand remains unchanged.
Ans: A) and demand both increase.
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Comparing single-price monopoly to perfect competition, monopoly
A) increases the amount of consumer surplus. B) has the same amount of consumer surplus. C) has no consumer surplus. D) decreases the amount of consumer surplus. E) decreases the amount of economic profit.
Think about a publishing firm that uses labor, ink, paper, and electricity as its variable inputs, and rents building space and printing presses as its fixed inputs. Describe how this publisher's short-run response to an increase in its labor costs would differ from its short-run response to an increase in one of its fixed costs