What can be said about the market price when a good is in surplus (i.e., when the quantity supplied exceeds the quantity demanded)? How will demanders and suppliers respond to a surplus, and what will happen to the market price?
What will be an ideal response?
When there is a surplus, the market price must be higher than the equilibrium price. Demanders will be satisfied in this situation, but suppliers will not. Competition among suppliers will cause the market price to be bid down until it reaches the equilibrium price.
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For each of the following cost functions, if possible, find minimum AC and minimum AVC
a. TC = 40,000 + 20 Q b. TC = 1000 + 2Q + 0.1 Q2
By definition, M1 includes:
a. savings accounts. b. money market mutual accounts. c. small denomination time deposits. d. checkable deposits.
More than 80% of American firms are incorporated
a. True b. False Indicate whether the statement is true or false
As a general rule, when accountants calculate profit they account for explicit costs but usually ignore
a. certain outlays of money by the firm. b. implicit costs. c. operating costs. d. fixed costs.