An increase in the price of a good will lead to an increase in the quantity supplied.
a. true
b. false
Ans: a. true
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As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
Once the Federal Trade Commission's (FTC) Bureau of Consumer Protection investigators have decided that a company's advertising is illegal, it can do all of the following except which one?
A) prevent the company from selling its product B) attempt to convince the company to cease its advertising C) attempt to convince the company to change its advertising D) issue a cease -and-desist order
In differentiating between the short- and long-run elasticities, when economists talk about short-run elasticities,
a. b and c. b. there is no need to mention short versus long run. c. the only issues are price and quantity. d. short-run elasticities are usually higher. e. short-run elasticities are usually lower.
The similarity between markets for common resources and markets with externalities is that:
A. the equilibrium quantity is too high in terms of society. B. the price that competitive firms charge does not capture the true costs and benefits of consumption. C. government involvement is needed to reach an efficient outcome. D. generally we get an oversupply at market.