If the firm in the given graph were to produce Q1 and charge P3, the area A would represent:
These are the cost and revenue curves associated with a firm.
A. consumer surplus.
B. producer surplus.
C. deadweight loss.
D. profits.
B. producer surplus.
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How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?
For a given change in demand: a. Quantity will change relatively more in the long run than the short run. b. Quantity will change relatively more in the short run than the long run. c. Price will change relatively more in the long run than the short run
d. Both b. and c. are true.
An increase in the population will lead to
a. a rightward shift in every individual's demand curve b. no shift in the market demand curve c. a rightward shift in the market demand curve d. a rightward movement along every individual's demand curve e. a rightward movement along the market demand curve
In a market with perfect competition, given enough time and no barriers to entry, profits will tend toward zero in the long run.
Answer the following statement true (T) or false (F)