Assume an industry initially in equilibrium has a price ceiling imposed at a price below the equilibrium price. Total revenue received by the producers from sales will:
a. rise as a result
b. rise as a result only if supply is inelastic.
c. rise as a result only if demand is inelastic.
d. fall as a result.
d
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Economies that are primarily market-oriented have fewer regulations.
Select whether the statement is true or false. A. True B. False
In the short run, if a perfectly competitive firm is unable to earn a profit, it will seek out the quantity of output where: a. its costs of production are minimum
b. its losses are the smallest. c. its price is greater than its marginal revenue. d. its price is the lowest compared to its competitors.
Suppose that someone makes the argument that because empty alcohol containers are found at many accidents, the containers cause accidents. This would be an example of
a. sound logic. b. reverse causality. c. omitted variables. d. bias.
Figure 10-3
In Figure 10-3, the perfectly competitive firm is realizing a
a.
loss equal to ABCE.
b.
profit equal to ABCE.
c.
profit equal to ABDF.
d.
loss equal to ABDF.