A single-price pure monopoly is economically inefficient:
A. only because it produces beyond the point of minimum average total cost.
B. only because it produces short of the point of minimum average total cost.
C. because it produces short of minimum average total cost and price is greater than marginal cost.
D. because it produces beyond minimum average total cost and marginal cost is greater than
price.
Answer: C
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Even economists have no single, precise definition of money because
A) money supply statistics are a state secret. B) the Federal Reserve does not employ or report different measures of the money supply. C) the "moneyness" or liquidity of an asset is a matter of degree. D) economists find disagreement interesting and refuse to agree for ideological reasons.
The use of domestic open market operations to counteract the effects of a foreign exchange market intervention on the domestic money supply is known as:
a. normalization. b. quantitative easing. c. sterilization. d. volatilization. e. depreciation.