If a profit-maximizing monopolist is currently charging a price on the inelastic portion of its demand curve, it should ______.
a. raise price and decrease output
b. lower price and increase output
c. reduce both output and price
d. hold output constant and raise price
e. do none of these
Ans: a. raise price and decrease output
Economics
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The Federal Reserve will engage in a matched sale-purchase transaction when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently
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Use the above table. What will the price be before external costs are internalized with a tax?
A. $14 B. $12.20 C. $1.80 D. $13
Economics