In the above figure, if the firm is producing at Q3 and charging a price of P3, it should
A. increase output and decrease price.
B. decrease output and increase price.
C. not change output or price.
D. shut down.
Answer: B
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Refer to the figure above. If the capital stock is fixed at $300, what is the consumption in the economy?
A) $3,000 B) $4,000 C) $2,000 D) $5,000
Assuming a homogeneous product, the Bertrand duopoly equilibrium price is
A) the same as the Cournot equilibrium price. B) less than the Cournot equilibrium price. C) greater than the Cournot equilibrium price. D) equal to the monopoly price.
The “War on Poverty” was declared by President Ronald Reagan in 1982.
Answer the following statement true (T) or false (F)
Suppose a policy change will generate $100,000 of benefits for low-income families and $120,000 of costs for high-income families. This change can best be described as
A. Pareto efficient. B. equitable. C. potentially efficient. D. inefficient.