The above figure shows the demand for cable and the cable company's cost of providing cable
a. What price and quantity will be produced if the company is unregulated and profit maximizes?
b. What price and quantity will be produced if the company is regulated using the marginal cost pricing rule?
c. What is the advantage of the marginal cost pricing rule?
d. What price and quantity will be produced if the company is regulated using the average cost pricing rule?
e. What is the advantage of the average cost pricing rule?
a. The price will be $90 per month and the quantity will be 20,000 households.
b. The price will be $30 per month and the quantity will be 40,000 households.
c. This rule results in the efficient level of production.
d. The price will be $60 per month and the quantity will be 30,000 households.
e. This rule results in the firm making a normal profit.
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If the market price of a product increases, then the total
A) consumer surplus will decrease. B) consumer surplus will increase. C) revenues of sellers will definitely increase. D) revenues of sellers will definitely decrease.
Suppose an economy operates at a real GDP level of $855, where saving = $400; investment = $95; government spending = $365; taxes = $130; imports = $210; exports = $170 . Which of the following statements is true in the light of the given information?
a. Aggregate expenditures will fall, because total injections exceed total leakages by $110. b. Real GDP will increase, because total injections are less than $855. c. The economy will be in equilibrium, because leakages equal injections. d. Real GDP will fall, because total leakages exceed total injections by $110. e. Inventories will rise, because planned saving exceeds planned investment.
Suppose you had the choice of attending two universities. University A pays all of its professors the same wage and awards the same raises. University B pays each professor according to market wages and productivity. Which university would you rather attend and why?
The labor-force participation rate equals the percentage of the total adult population that is in the labor force
a. True b. False Indicate whether the statement is true or false