An internationally discriminating monopolist will maximize its profits if it sets quantity where:
a. MC = P in the home market and MC = MR in the foreign market.
b. MC = MR in the home market and MC = P in the foreign market.
c. MC = P in both the home and foreign markets.
d. MC = MR in both the home and foreign markets.
Ans: d. MC = MR in both the home and foreign markets.
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According to the above table, if the minimum wage is set at $20 per hour, then
A) the quantity of labor demanded will increase until it is equal to the quantity of labor supplied. B) there is an excess demand for labor. C) the labor demand curve will shift until $20 is the new equilibrium real wage rate. D) the quantity of labor supplied exceeds the quantity of labor demanded by 50 million hours per month. E) the labor supply curve will shift until $20 is the new equilibrium real wage rate.
Automatic stabilizers are considered
A) discretionary fiscal policies. B) discretionary monetary policies. C) non-discretionary fiscal policies. D) non-discretionary monetary policies.