Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p. If the long-run supply curve is horizontal, then how much will consumers spend, in total, on potatoes?
A) $0
B) $500
C) $10,000
D) $50,000
C
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What is the fundamental principle that economists use when evaluating the costs and benefits of production?
A) cost of goods principle B) production principle C) marginal principle D) supply and demand principle
From the economic point of view, what does a professor who posts her syllabus on the Internet and a restaurant that posts its menu outside have in common?
A) They are attempting to exploit others. B) They are reducing competition. C) They are expanding the range of opportunities available to others. D) They are solely in it for the money.
Chapter 16 on "Financial System Design" calls the asymmetric information problem discussed in earlier chapters the __________ conflict
A) manager-stockholder B) stockholder-lender C) manager-lender D) profit-risk
The goal of all regulation is the creation of perfectly competitive markets
a. True b. False Indicate whether the statement is true or false