When production of a good results in an external cost, the unregulated competitive market equilibrium is inefficient because ________
A) MSC = MC
B) MSC = MB
C) MSC > MB
D) MSC < MB
E) MSC is undefined
C
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The figure above shows the demand and cost curves for a single-price monopoly. What price will the firm charge?
A) $50 per unit B) $30 per unit C) $20 per unit D) $10 per unit
A drop in six-month LIBOR is good news to __________ in a swap contract
A) the fixed-rate payer B) the floating-rate payer C) both payers D) neither payer
If a nation's currency depreciates, this will tend to
a. shift a nation's balance of trade toward a deficit. b. cause a deficit in the government's budget (expenditures - revenues). c. make foreign goods more expensive for the nation's citizens. d. make foreign goods cheaper for the nation's citizens.
Does a binding price ceiling result in a shortage or a surplus in the market?