The market price of an individual transferable quota is equal to the
A) marginal private benefit.
B) marginal social benefit.
C) marginal social benefit minus the marginal cost.
D) marginal private benefit minus the marginal cost.
C
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The long-run equilibrium of a monopolistic competitor lies on: a. the minimum point of the average total cost curve
b. the downward-sloping portion of the average total cost curve. c. the upward-sloping portion of the average total cost curve. d. the minimum point of the marginal cost curve.
There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to
A) an increase in the absolute price of apples, ceteris paribus. B) a decrease in the absolute price of bread, ceteris paribus. C) a decrease in the absolute price of apples, ceteris paribus. D) an increase in the absolute price of bread, ceteris paribus. E) a and b
If a union establishes by collective bargaining a wage rate that is above a competitive market equilibrium wage rate, then
A) an excess quantity of labor will be supplied. B) a shortage of labor will result. C) there will be an increase in total employment. D) management will want to substitute labor for machinery.
Using a Paasche index to calculate the Consumer Price Index (CPI)
A) weights quantities with current prices. B) weights prices with base-year quantities. C) weights quantities with base-year prices. D) weights prices with current year quantities.