In a monopoly, price is greater than marginal cost.
Answer the following statement true (T) or false (F)
True
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Refer to Excise Subsidy. Which areas count as part of the measure for both consumer's surplus and producer's surplus?
The following questions refer to the accompanying diagram which shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. areas A, B, E and H.
b. areas B, E and F.
c. areas B and E.
d. no areas can count as part of the measure for both.
Many Americans are selling their used cars and buying new fuel-efficient hybrids. Other things remaining the same, in the market for used cars, ________ and in the market for hybrids ________
A. supply increases and the price falls; demand increases and the price rises B. demand decreases and the price rises; supply increases and the price falls C. both demand and supply decrease and the price might rise, fall, or not change; demand increases and the price rises D. demand decreases, supply increases, and the price falls; supply in-creases and the price falls
Suppose a bank has total assets of $3,000,000,000 and total deposits and other liabilities of $2,800,000,000. The bank's leverage ratio is
A) 6.7%. B) 7.1%. C) 5.6%. D) 93.3%.
External benefits are those that accrue:
A. directly to the decision maker of a market exchange. B. indirectly to the decision maker of a market exchange. C. without compensation to someone other than the person who caused it. D. to the government without its direct intervention.