In the above figure, a price ceiling of $4 would
A) result in a shortage in the long run.
B) result in a surplus in the long run.
C) have no effect.
D) result in a surplus in the short run but have no effect in the long run.
C
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The rules of the WTO:
a. apply only to domestic trade within a nation. b. apply to both domestic trade within a nation and international trade with other nations. c. apply only to trade among nations. d. include a prohibition of tariffs. e. encourage high tariffs.
The MU of computers is initially larger than the MC of producing them in a free market. We may expect output of computers to
A. fall, MC to rise, and MU to rise. B. rise, MC to fall, and MU to fall. C. rise, MC to rise, and MU to fall. D. fall, MC to fall, and MU to rise.
What was the most important consequence of suburbanization?
A. It made people less dependent on their cars. B. It was very bad for the construction industry. C. It left the cities with large concentrations of poor people. D. It raised the tax bases of most cities.
Exhibit 7-12 Marginal revenue and cost per unit curves
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If price is equal to OD for the firm shown in Exhibit 7-12, total profit is maximized when:
A. output is X. B. output is Y. C. output is Z. D. output is greater than Z.