Explain why the following statements are true or false: a) Both monopolists and competitive firms have supply
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Question:
Explain why the following statements are true or false:
a) Both monopolists and competitive firms have supply curves that include part of the marginal cost curve.
b) The present discounted value of a dollar received 5 years from today is less than if received 10 years from today for any positive interest rate.
c) If two individuals have inverse demand curves given by P = 10 - 4q1 and P = 10 - 8q2 respectively, then total demand for the individuals is P = 10 - 12q.
d) The burden of a tax falls primarily on firms if demand is relatively inelastic compared to supply.
e) Perfect price discrimination results in zero consumer surplus and a maximization of aggregate surplus.
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