Suppose that the demand for movies is given by Qd = 30 - 2 × PMovies and the supply is given by Qs = 2 + 2 × PMovies. What is the equilibrium price and quantity of movies?
A. PMovies = $7, Q = 30
B. PMovies = $2, Q = 30
C. PMovies = $4, Q = 28
D. PMovies = $7, Q = 16
D. PMovies = $7, Q = 16
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Cartels display a pronounced tendency to disintegrate over time because
A) increased profits induce laziness and carelessness among cartel members. B) nobody benefits in the long run from their operation since they merely redistribute wealth. C) their operation is so blatantly contrary to the public interest. D) there are so many margins on which competition can occur.
Why is the distinction between long run and short run less important in monopoly markets?
What will be an ideal response?
If a monopolist in the output market purchases its monopoly supplier of labor, consumers benefit
What will be an ideal response?
Which of the following statements best describes the difference between economic regulation and social regulation?
a. Economic regulation has little to do with price and output while social regulation explicitly deals with price and output. b. Social regulation is concerned with direct redistribution of wealth while economic regulation is concerned with accumulation of wealth. c. Economic regulation is concerned with direct redistribution of wealth while social regulation is concerned with accumulation of wealth. d. Social regulation has historically targeted industries such as railroads and airlines while economic regulation has all the industries under its purview. e. Economic regulation deals with price and output , while social regulation deals with health and safety matters that apply across several industries.