If you were to put the following effects of a decrease in demand into the sequence in which they occur, which would be last?
a. The demand curve facing each individual firm drops.
b. Each firm reduces quantity supplied to the point where marginal cost equals its now-lower marginal revenue.
c. In the short run, the market price drops.
d. Market output falls.
e. A short-run loss forces some firms out of business in the long run.
E
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When ________ changes, the supply of loanable funds curve shifts
A) the price level B) "animal spirits" C) people's expected future income D) the expected rate of profit E) investment
Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor, to help him
Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?
Every profit-maximizing producer is cost minimizing.
Answer the following statement true (T) or false (F)
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.The outcome of the game in the figure shown predicts that Starbucks will earn profits of:
A. -$1 million. B. -$2 million. C. $2 million. D. $0 million.