A price maker is a firm that:
A) has the power to affect the price of the product it sells.
B) earns economic profits in both the short run and the long run.
C) can sell any quantity of its product at the prevailing market price.
D) sells its products at a price equal to the marginal cost of production.
A
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What is the short-run industry supply curve in a perfectly competitive industry?
What will be an ideal response?
The cross price elasticity of demand is measured by the
A) percentage change in the quantity demanded of one good divided by the percentage change in quantity demanded of another good. B) percentage change in the price of one good divided by the percentage change in price of another good. C) percentage change in the demand for one good divided by the percentage change in price of another good. D) percentage change in the price of one good divided by the percentage change in the demand for another good.
Prices that maximize the public interest will always allow reasonable profits for firms
a. True b. False Indicate whether the statement is true or false
The adverse effects of rent controls include
A. excessive construction of new rental housing. B. keeping rental rates too high in a normal market. C. increased incentives for people to purchase their own homes. D. reduced incentive to construct new rental housing.