The marginal cost curve is a linear upward-sloping curve
a. True
b. False
Indicate whether the statement is true or false
False
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Aristotle believed voluntary trade should be
A) an exchange of unequal values. B) an exchange of equal values. C) an exchange of equal material possessions. D) an exchange of unequal material possessions.
Suppose the economy is in a long-run equilibrium when a positive demand shock occurs. On the graphs above, show what happens to bring the economy back to long-run equilibrium, assuming that there is no policy response
In words, describe how the graph would be different, if policy makers did intervene.
A steel mill raises the price of steel by 20%, which results in a 7% reduction in the quantity of steel demanded. The demand curve facing this firm is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.
Refer to the graph shown. Assuming that the monopoly maximizes profit, the social cost of monopoly will be:
A. $40,000 per day. B. $20,000 per day. C. $10,000 per day. D. zero.