If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,

a. new firms would enter the industry.
b. the firm would be forced to go bankrupt.
c. positive economic profit would grow even larger.
d. marginal cost would exceed average cost.


b

Economics

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All of the following are ways for market participants to overcome adverse selection except for which one?

A) profit-sharing B) screening C) certification D) signaling

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When supply is written as Q = c + dP and P and Q are the equilibrium values for price and quantity, which of the following is the value of the price elasticity of supply, ES?

A. -c/d B. c(P/Q) C. -d/c D. d(P/Q)

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The transfer by check of a demand deposit written on one bank into another bank with no excess reserves gives the recipient bank additional liabilities

What will be an ideal response?

Economics