Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The perceived price on the part of consumers is
A. Ps.
B. P0.
C. Pd.
D. undetermined without more information.
Answer: C
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All else constant, as more firms substitute alternative materials, e.g., plastic, for copper, the market price of copper would be expected to:
A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given.
In a Stackelberg game, a monopolist could deter entry from a potential rival by
A) telling the potential rival not to enter. B) strategically moving first. C) moving to a Bertrand model. D) None of the above.
Which of the following statements best describes a price ceiling?
(a) The maximum price that consumers will pay for a product/service. (b) A price ceiling will cause an excess demand for a good/service. (c) A price lower than the market equilibrium price. (d) All of the above.
Refer to Figure 8.5. The marginal cost of the third oven is A) $50. B) $100. C) $150. D) indeterminate from this information.