A price floor on corn would have the effect of
a. creating a surplus regardless of the level at which the price floor is set
b. creating a surplus supply when the floor is above the equilibrium price
c. creating a shortage when the price floor is set below the equilibrium price
d. creating a shortage regardless of where the price floor is set
e. ensuring a more equitable distribution of the good among consumers
B
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Many developing countries make the government budget one of the primary tools of long-run industrial development, with the government owning and operating industries such as steel mills, airlines, and phone companies
Indicate whether the statement is true or false
The large influx of immigrant families between 1860 and 1910 caused the total population to grow at a faster rate than the work force
Indicate whether the statement is true or false
Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's marginal revenue at a price of $60?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) $40 B) $60 C) $70 D) $50
A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . In the long run, the firm should
a. Shut down since price is greater than average cost b. Continue operating price is higher than average cost, its making a profit c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs