The accompanying figure shows the annual demand for haircuts for one person in the town of Beaumont. There are a total of 300 residents in Beaumont, each with this same demand curve. 
If the residents of Beaumont purchase a total of 1,800 haircuts each year, then the market price for a haircut must be:
A. $20.
B. $30.
C. $35.
D. $40.
Answer: A
You might also like to view...
The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. A Nash equilibrium is that
A) firm A selects a high advertising budget and firm B selects a low advertising budget. B) firm A selects a low advertising budget and firm B selects a high advertising budget. C) both firms select a high advertising budget. D) both firms select a low advertising budget.
Capital budgeting projects include all of the following except
A) the purchase of a six-month treasury bill. B) the expansion of a plant. C) the development of a new product. D) the replacement of a piece of equipment.
What happens if the price received by a perfectly competitive firm causes it to produce at a quantity where price equals average cost?
a. The firm earns a profit. b. The firm earns no profit. c. The firm earns losses. d. The firm earns little profit.
The equilibrium price of a burger is $10, and the equilibrium quantity is 150 burgers. If the quantity of burgers sold increases to 200, the difference is a gain in net social welfare
a. True b. False Indicate whether the statement is true or false