If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease
D
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A person will choose to buy a good as long as
A) marginal benefit is at least as great as price. B) consumer surplus is positive. C) marginal benefit is positive. D) consumer surplus is at least as great as price.
Under perfectly competitive conditions, marginal revenue is
a. greater than average revenue. b. equal to average revenue. c. less than average revenue. d. equal to the average variable cost.
If a profit-maximizing monopolist is currently charging a price on the inelastic portion of its demand curve, it should ______.
a. raise price and decrease output b. lower price and increase output c. reduce both output and price d. hold output constant and raise price e. do none of these
If the cost of the negative pollution externality was added to the marginal cost of production, the true cost curve would be
A. above the marginal cost curve for production only. B. vertical. C. steeper than the marginal cost curve for production only. D. to the right of the marginal cost curve for production only.