Recall from Chapter 5: interest rates in the free market (without artificial lowering by the Fed) are largely determined by
A) Congress.
B) arbitrary bank lending practices.
C) household saving and consumption preferences.
D) tax revenues and lobbying demands.
Question 2
If the marginal cost of a monopolist exceeds its marginal revenue, ________.
A) additional production reduces profits
B) additional production enhances profits
C) the difference between its marginal revenue curve and demand curve is at the highest
D) the difference between its marginal revenue curve and demand curve is at the lowest
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