Comment on the following statement: "For a monopolist, marginal revenue is always equal to price."
What will be an ideal response?
The statement is false. Marginal revenue is less than price for a monopolist (at every level of output except for the first unit). This is due to the fact that the demand curve facing a monopolist is downward sloping. When a monopolist increases output by one unit, he must lower the price on all units sold. This means that the increase in revenue will be less than the price of the good.
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What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?
What will be an ideal response?
When the dollar depreciates, the prices of imported inputs rise and the U.S. aggregate supply curve, therefore, shifts inward, pushing up the prices of American-made goods and services.
Answer the following statement true (T) or false (F)