If a $20 billion increase in government expenditures increases equilibrium GDP by $50 billion, then:
A. the multiplier is 2.
B. the MPC for this economy is .6.
C. inflation is occurring.
D. the MPS for this economy is .6.
B. the MPC for this economy is .6.
Economics
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Price is taken to be a "given" by an individual firm selling in a purely competitive market because:
A. The firm's demand curve is downward-sloping B. There are no good substitutes for the firm's product C. Each seller supplies a negligible fraction of total market D. Product differentiation is reinforced by extensive advertising
Economics
When a monopolist practices price discrimination, the monopolist's profits will be lower than in a single-price monopoly.
a. true b. false
Economics