Hey guys my Econ final is on Tuesday and I could use some help. These are 4 example questions true/false with explanation needed.
1. A monopolist will produce less and charge a higher price than a perfectly competitive industry.
2. Regardless of the type of price control, if it is effective it will reduce the quantity.
3. At maximum profit, a perfectly competitive firm will produce in the short-run even if it is losing money.
4. If demand is inelastic an increase in the price will cause a decrease in the firm's Total Revenues.
Economics 101 - economyst, Monday, May 5, 2008 at 9:12am
Take a shot, what do you think?