The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. A quota to prevent the overuse of the cod sets the catch equal to ________
A) 0 tons per week
B) 300 tons per week
C) 400 tons per week
D) None of the above answers is correct.
B
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Under which of the following conditions will a profit-maximizing perfectly competitive firm shut down in the short run?
A) when it is making a normal profit B) whenever its marginal cost is less than its marginal revenue C) when the price is less than its minimum average variable cost D) whenever its total cost is greater than its total revenue E) when the price is less than its minimum average total cost
The Fed can reduce the money supply by reducing
A) the currency—deposit ratio. B) the monetary base. C) reserve requirements. D) the discount rate.
In industries in which strong network effects exist, which industry structure is likely to emerge?
A) perfect competition B) monopoly C) monopolistic competition D) oligopoly
When we are at full employment, if demand rises, aggregate supply will rise in the form of higher _____.
Fill in the blank(s) with the appropriate word(s).