Which of the following is true for a pure monopolist?
a. The firm has a perfectly elastic demand curve.
b. The firm will always earn an economic profit.
c. The demand curve is above the marginal revenue curve.
d. None of these is true.
c
Economics
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The value of intermediate goods is not included in the calculation of GDP to avoid the problem of
a. depreciation. b. inflation. c. double counting. d. transfer payments.
Economics
Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A) promoting the attainment of an unhindered market equilibrium. B) allowing quantity demanded to adjust to equality with aggregate supply. C) creating excess quantities demanded or excess quantities supplied. D) pushing prices to market clearing levels more rapidly than private market forces.
Economics