If you are willing to purchase a house for $500,000 and you purchase the house for $500,000 . this transaction will generate:
a. There is no surplus created for either of the party
b. $0 worth of seller surplus and unknown amount of buyer surplus.
c. $0 worth of buyer surplus and unknown amount of seller surplus.
d. No information provided.
c
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A perfectly competitive firm is earning an economic profit when total fixed costs increase. Assuming the firm does not shut down, in the short run the firm will
A) charge a higher price. B) produce more output so the extra revenue will cover the increased costs. C) produce less output to decrease total costs. D) continue producing the same quantity as before but will make less economic profit. E) continue producing the same quantity as before and continue making the same economic profit as before.
Consider the demand for labor in the computer chip industry. The demand for labor
A) is derived from the demand for computer chips. B) is shown by a perfectly elastic demand for labor. C) is shown by a perfectly inelastic demand for labor. D) has a demand curve that is backward bending.
If expansionary monetary policy reduces real interest rates in the United States, which of the following is most likely to occur?
a. Net foreign investment will decline, causing the dollar to depreciate and net exports to increase. b. Net foreign investment will decline, causing the dollar to appreciate and net exports to decrease. c. Net foreign investment will increase, causing the dollar to appreciate and net exports to decline. d. Net foreign investment will increase, causing the dollar to depreciate and net exports to increase.
Antitrust cases against ________ resulted in the firm(s) being found not guilty of unreasonable conduct under the Sherman Act.
A. International Harvester B. United States Steel C. Eastman Kodak D. All of the above are correct.