In an administrative command economy, a price below equilibrium
a. means we can buy cheap goods freely
b. creates opportunities for corruption
c. does not matter at all
d. both a and b are correct
e. none of the above
B
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The above figure shows the supply curves in four different markets. If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers, which market would produce the smallest amount of deadweight loss?
A) A B) B C) C D) D E) A and D
Refer to Figure 10.1. The Nash equilibrium occurs on the ________ page, in the ________ cell
A) Contribute; upper-left B) Contribute; lower-right C) Don't Contribute; lower-right D) Don't Contribute; upper-left
Refer to the graph shown which shows total product. At point B:
A. marginal product is at its minimum. B. marginal product is zero. C. marginal product is at its maximum. D. average product is at its maximum.
A potential entrant knows that it faces a (inverse) residual demand curve given by P = 90 ? 3Q. While the entrant does not know the inverse market demand, it does know that the incumbent committed to producing 10 units. Using this information, which of the following equations best summarizes the inverse market demand curve?
A. P = 80 ? 3Q B. P = 60 ? 3Q C. P = 50 ? 3Q D. None of the statements is correct.