As a monopolist increases the quantity of output produced, what happens to price (P) and marginal revenue (MR)?
a. both P and MR remain constant
b. P is constant, but MR decreases
c. P decreases, but MR is constant
d. both P and MR decrease, but P falls faster than MR
e. both P and MR decrease, but MR falls faster than P
E
Economics
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If you have $1,000 in wealth and the price level increases by 20 percent, then
A) the $1,000 will buy fewer goods and services. B) the $1,000 dollars will buy 20 percent more goods and services. C) the real value of the $1,000 increases. D) you will be able to buy fewer goods, but the real value of those goods will increase.
Economics
Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of an increase in the U.S. money supply on the dollar/euro exchange rate
What will be an ideal response?
Economics