Because of the kind of externalities that tend to be generated from general R&D resources bought by firms, the equilibrium price of R&D
A) is above the optimal level, and quantity is below the optimal level.
B) is below the optimal level, and quantity is above the optimal level.
C) and quantity of R&D are both above the optimal level.
D) and quantity of R&D are both below the optimal level.
E) must fall in order for the market to reach equilibrium.
D
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Equilibrium in a monopoly occurs when:
a. the monopolist has driven out all competitors. b. the monopoly firm has sold the maximum number of units. c. the monopoly firm produces the quantity that maximizes its profits (or minimizes loss) where MR = MC. d. the monopoly firm has gotten unions to agree to wage concessions.
In its function of controlling the money supply, the Fed does which one of the following?
a. Controls the money supply. b. Clears checks. c. Regulates banks. d. Holds gold belonging to foreign governments. e. All of these.