Refer to Figure 13-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
A
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Refer to Figure 4-9. What area represents the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) E B) B + C C) B D) B + E
A welding machine is an example of a factor of production if it is being used to produce automobiles
Indicate whether the statement is true or false
A good example of a monopolistic competitive industry is
A) the U.S. auto industry. B) the public utility industry. C) the computer game industry. D) mining.
If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE?
A) p < AVC for all levels of output. B) p < AVC only for the level of output at which p = MC. C) p < AVC only if the firm has no fixed costs. D) The firm will earn zero profit.