The horizontal dotted line is
A. a price ceiling.
B. a price floor.
C. either a price ceiling or a price floor.
D. neither a price ceiling nor a price floor.
A. a price ceiling.
You might also like to view...
The slope of an isoquant is equal to the ratio of the price of the input on the horizontal axis divided by the price of the input on the vertical axis, multiplied by -1
Indicate whether the statement is true or false
Successive monopolies face the problem of:
a. double marginalization. b. volumetric interdependence. c. opportunism. d. predatory pricing.
Economies of scale suggests that as the level of production:
a. decreases, the average cost of producing each individual unit increases. b. increases, the average cost of producing each individual unit increases. c. decreases, the average cost of producing each individual unit declines. d. increases, the average cost of producing each individual unit declines.
In the short run, the nominal interest rate is affected by changes in the money supply perceived to be temporary, but once ___ adjust(s), the nominal interest rate ___ in the long run.
a. the supply of money; rises b. the price level; will revert to its former level c. expectations of interest rates; falls d. real GDP; does not change