Assume a perfectly competitive industry is in long-run equilibrium at a price of $75. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price
A. less than $75.
B. greater than $75.
C. of $75.
D. either greater than or less than $75 depending on the magnitude of the decrease in demand.
Answer: C
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An equilibrium in game theory in which the players make and share the monopoly profit is called
A) the Nash equilibrium. B) the cooperative equilibrium. C) a contestable market equilibrium. D) limit pricing.
In the Village of Punjab, Sheryl owns a well, which is the only source of drinking water. The supply of water is perfectly inelastic at a quantity of 1,000 gallons of water per day
At a price of $2.00 per gallon, the quantity demanded per day is 1,000 gallons. The government imposes a $0.50 per gallon tax. a) After the tax is imposed, what is the price paid by the villagers? What is the price received by Sheryl? b) How much revenue does the government collect? c) What fraction of the tax does Sheryl pay? What fraction is paid by the villagers?
Who controls a sole proprietorship?
A) the owner B) the stockholders C) the bondholders D) the employees
The ________ is a commonly used measure of the degree of inequality in an income distribution.
A. Herfindahl-Hirschman index B. Lorenz curve C. Gini coefficient D. utility possibility frontier