If supply increases and demand decreases, then equilibrium price will fall
a. True
b. False
A
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Suppose that two clothing manufacturers, Frederick's Fashions and Stephan's Styles, announce that they plan to merge. The Herfindahl-Hirschman index is currently 1,500. After the merger, the HHI will rise to 1,560. This market is
A) highly concentrated and so the government will definitely challenge the merger. B) moderately concentrated and because the merger increases the HHI by more than 50 points, the government will definitely challenge the merger. C) moderately concentrated, but because the merger increases the HHI by less than 100 points, the government will probably not challenge the merger. D) competitive and so the government will not challenge the merger.
The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, at the equilibrium quantity, the marginal private cost is
A) zero. B) $14,000. C) $19,000. D) $16,000.
If a firm charges different consumers different prices for the same product and the difference cannot be attributed to cost variations, then it is engaging in
A) markup pricing. B) cost-plus pricing. C) odd pricing. D) price discrimination.
A person quits her job in order to spend time looking for a better paying job. This is an example of
A) frictional unemployment. B) cyclical unemployment. C) seasonal unemployment. D) structural unemployment.