A price ceiling imposed below equilibrium price causes a deadweight loss for society because:
a. buyers benefit at the expense of sellers
b. as a result of the ceiling, units of output are not produced despite the fact that the value to consumers exceeds the production cost.
c. sellers benefit at the expense of buyers.
d. the poor gain at the expense of the rich.
b
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Entrepreneurs can delegate every one of the following tasks to labor except
a. hiring and training new employees b. assuming business risk and uncertainty c. supervision of the production process d. researching ideas for new products e. marketing the goods and services produced
When demand is elastic, an increase in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.
The most important dimension of capital is
A. time. B. the interest rate. C. depreciation. D. immediate returns.
The individual firm's demand curve facing a monopoly is
A. the marginal cost curve above minimum average variable cost. B. also the market demand curve. C. nonexistent. D. the summation of all perfectly competitive firms' demand curves.