Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / QUESTION 2 Classify the following statement as true or false

QUESTION 2 Classify the following statement as true or false

Economics

QUESTION 2 Classify the following statement as true or false. Justify the answer. The justification is more important than the classification An increase in the interest rate cannot decrease a saver's future consumption.

Classify the following statement as true or false. Justify the answer. The justification is more important than the classification In a monopolistic market the demand function is Q-100 - 2P. The monopolist's marginal cost function is MCQ) - 40. If the monopolist cannot price-discriminate then it will produce 10 units of the good.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

2 An increase in interest rate will increase the future income of the savers. Thus the future income and consumption of savers increase instead of decreasing. But the borrower’s future income and consumption decrease with increase in interest rate.

Answer: True.

The statement is true monopolist will produce 10 units of goods.