The price of gasoline rises by 33 percent to $3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be
A) the same as one month after the price hike.
B) greater than one month after the price hike.
C) less than one month after the price hike.
D) the same as it would be if the price hike had never occurred.
C
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Refer to Figure 8A.1. The stock of capital no longer increases once the economy reaches point
A) a. B) b. C) c. D) e.
International trade based solely on internal scale economies in both countries is likely to be carried out by
A) monopolists in each country. B) a relatively large number of price competing firms. C) a relatively small number of price competing firms. D) a relatively small number of imperfect competitors. E) a large number of oligopolists in each country.
A movement along a demand curve is
A) a change in demand and can be caused by a change in consumers' income. B) a change in the quantity demanded and is caused by a change in the price of the good. C) a change in the quantity demanded and can be caused by a change in consumers' income. D) a change in demand and is caused by a change in the price of the good.
According to the graph shown, if a firm is producing at Q1:
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. profits are being maximized.
B. average total costs exceed the market price.
C. the firm should not increase production because it will earn loss.
D. marginal revenue is greater than average total cost.